Rebirth of the Official Business Route

Error correction: The price of crude oil should be calculated in barrels, 20-140 US dollars per barrel)

Liu Chengwei, who is the deputy party secretary and deputy general manager of China National Offshore Oil Corporation, is under a lot of pressure. The head office has just registered CNOOC Limited in Hong Kong. He is also the chairman and chief executive officer of CNOOC Limited. duty.

Registering an offshore company is to make final preparations for listing on the Hong Kong Stock Exchange. The head office separates business assets such as oil and gas exploration, development, production and sales from the head office to CNOOC, which is about to be listed. w Novel chapters are updated the fastest

The heavy responsibility of listing on the Hong Kong Stock Exchange was on Liu Chengwei's shoulders. It was the time when the party group of the head office was full of confidence in overseas listing. Then, at the road show before the initial listing in Hong Kong at the end of April, Liu Chengwei and the company's party group had a fight. Feeling like a stick, the indifference of investment made the prospect of listing dim. The lead underwriter even proposed to reduce the line plan, reducing the proportion of 24% of the stock market to 12%, and the stock price will also drop.

To revise the listing plan according to the underwriter's suggestion, it is better to abandon the listing plan this time. The party group of the head office is already considering the countermeasures for the failure of the listing plan. These things are weighing on Liu Chengwei's heart, making him very uncomfortable.

I was not in the mood to come to Xinting to participate in the early stage of the negotiation, but Tang Xueqian, deputy governor of the Standing Committee of Jiangnan Province, personally participated. The offshore oilfield support base project belongs to the base company system, and this part of the business does not belong to the listed company. It is not Liu Chengwei who is also the deputy secretary of the party group in charge of the base company system. It is duty-bound to attend such activities. w Fiction novel chapters are updated the fastest

After participating in the event, Liu Chengwei and his assistant, Xie Zilei, who is also CNOOC's financial director, couldn't hide their exhaustion. At night, he and Xie Lei were not in the mood to participate in the company's reception at the East China base, and returned to the hotel early to discuss the listing. Last resort. Although he knew that Tang Xueqian, deputy secretary of the Jiangnan Provincial Party Committee, also lived in the Dongshan Hotel, he was not in the mood to visit.

Boom boom boom...

Liu Chengwei sat on the sofa studying the listing materials, heard someone knocking on the door, and then saw his secretary push the door in and told him: Mr. Liu, Vice Governor Tang is calling and wants to come over to meet you...

Liu Chengwei didn't know if there was any need to meet with Tang Xueqian in private other than business, but he had no reason to refuse, so he handed the materials to the secretary to put away, and went to the reception room with Xie Lei.

Liu Chengwei saw Tang Xueqian coming over. Except for his secretary. There are two young people.

Come here and introduce two people to Secretary Liu. Secretary Liu won't think I'm presumptuous? Tang Xueqian sat down with a smile. He is still used to calling Liu Weicheng an official position.

How come? Liu Chengwei speculated about the identities of these two young people.

He invited Tang Xueqian to sit down. Sit down by yourself. Ask others to sit down.

This is Mr. Ye Jianbin, the local president. Tang Xueqian pointed to Ye Jianbin and introduced him to Liu Chengwei.

Liu Chengwei subconsciously stood up from the sofa. Although he had never met Ye Jianbin. Kumho Commercial's shareholding in the company's Dongshan Port is not very high. But as the promotion and planning behind the Dongshan Port project. Liu Chengwei is no stranger to Kumho Commercial. He is no stranger to the Ye family. in addition. He is in a high position at the deputy ministerial level. I know enough about Kumho. When he stretched out his hand to shake hands with Ye Jianbin. His eyes were already looking sideways at the younger-looking youth beside Ye Jianbin. He asked hesitantly, Who is this?

Zhang Ke took the liberty to visit at night... Zhang Ke reached out and shook Liu Chengwei. He shook hands with Xie Lei who was standing beside Liu Chengwei.

... Even though he had just guessed that the young man in front of him was that person, Liu Chengwei was stunned for a moment, thinking that he was really young, and after a daze, he shook hands with strength and said, How can I be presumptuous, it should be for you. I'm shocked, looking at the people in China who know a little about Kumho, who wouldn't want to see you?

Zhang Ke also smiled slightly, everyone sat down together, and after a short greeting, Zhang Ke went straight to the topic and asked Liu Chengwei: I heard that Mitsui \u0026 Co., Ltd. of Japan proposed to the Energy Bureau of the State Planning Commission to open an oil and gas field in the East China Sea with China National Offshore Oil Corporation. What is the view within the company on this?

The Japanese proposal has a strong political color. As a senior official at the vice-ministerial level, he should be careful not to comment, whether in public or in private. Liu Chengwei looked at Zhang Ke in bewilderment, and was also a little wary. Having created such a dazzling career, and Kumho has many political relationships behind it, I thought he shouldn't have asked such a blunt question. Liu Chengwei was a little displeased, but he didn't want to turn his face. He just said vaguely: CNOOC has not been formally notified. This may be wishful thinking of Mitsui \u0026 Co....

If CNOOC's listing and financing plan fails this time, Zhang Ke asked aggressively, If the listing and financing plan fails, CNOOC will consider accepting Mitsui's proposal?

Hearing Zhang Ke's question, Liu Chengwei glanced at Tang Xueqian and Ye Jianbin who were sitting aside, and his mind calmed down. Kumho can promote the construction of the port, and the capital behind them who are closely related to Southeast Asian Chinese businessmen is strong. Of course, it will not be for no reason. to discuss such a sensitive political topic.

Kumho Commercial is headquartered in Hong Kong, and Kumho's backdoor listing in May 1997 can be regarded as a financing classic. The timing was so ingenious that many people only want to believe that Kumho's fortune is extremely good.

Liu Chengwei said: Currently, the listing plan of the oil and gas business has encountered some difficulties, but Mitsui's cooperation proposal is another issue. The party group has not discussed it, and I am not good at asking you about this issue.

I asked someone to collect some materials about the listing of China National Offshore Oil Corporation, and I want to ask Mr. Liu a few words in person, Zhang Ke said. The company to be listed has injected a total of 11.1 billion in net asset value. Unlike other state-owned enterprises that have been listed overseas and stripped off their debts, CNOOC has also put 12.6 billion in debt into the company to be listed. The head office has no debts but still holds Cash, this is also where investors can't understand...

Liu Chengwei was very happy that Zhang Ke was able to ask these questions in front of him, and patiently explained: The oil and gas exploration, development, production and sales business assets injected into the listed company are the core assets of the head office, and they are also high-quality assets. The management transparency is also very high. This part of the business assets

The profit of the land is as high as 100 million, and the predicted profit in 1999 will reach 31.1 billion; relatively, the asset quality of the base companies and professional companies is relatively poor, and the profitability is also weak, but the exploration, development, production and sales of offshore oil cannot be separated from the base The support of the company and the professional company, the two should be developed in a balanced way—at present, there is still a big gap in the quality of the two parts of business assets, and there is also a lot of gap in profitability. How can we achieve a balanced development? The head office held several meetings and discussed it before deciding to divest the debts to the listed company for digestion, leaving more cash for other businesses to develop—

Xie Lei was pondering the Mitsui proposal mentioned by Zhang Ke just now, and thought to himself, if the listing and financing can be successful, the head office will naturally reject the Japanese proposal with confidence; The development of oil and gas fields has to be delayed due to lack of funds, which in fact also allows Japan to achieve the purpose of delay. Xie Lei thought, and his face beamed with joy. He knew that the two principals of Kumho, accompanied by the executive vice-governor of Jiangnan Province, would come for a night visit. Kumho can have the courage to build a port on Dongshan Island, which really helps solve a big problem.

Petroleum Corporation and Petrochemical Corporation both have plans to go public overseas in the near future, and we have carefully analyzed the gap between the three domestic oil companies, Ye Jianbin said, In the petroleum industry, scale is the most important indicator of competitiveness. In the domestic market, PetroChina controls 67% of oil production capacity and refining capacity, Sinopec controls 22% of oil production capacity and 60% of refining capacity, and CNOOC and foreign-funded partners only control 1% of oil production capacity and no refining capacity—from From this point of view, CNOOC cannot be regarded as our best choice, but Mitsui and Kumho compete in many aspects, and Secretary Liu must have heard that Kumho is willing to help CNOOC in its overseas listing... Ye Jianbin I didn't say anything about national interests. In the face of commercial behavior, those words are a bit empty, and it will make people think that Kumho has some politics. Anyway, the conflicts that broke out between Kumho Commercial and Mitsui are not the same. The hind legs are also semi-open.

On the one hand, Liu Chengwei felt pressured by the difficulties encountered in the listing. On the other hand, if he wanted to develop the oil and gas resources in the East China Sea on his own, who would be willing to let foreign companies intervene? Moreover, the cooperation with Mitsui is very politically sensitive. Even if the political responsibility will be borne by the higher-ups, the head office will still bear the pressure of public opinion.

Kumho's participation in China Ocean's overseas trip plan is probably the best news Liu Chengwei has heard in the past few days. Since it was directly discussed on the table, he also directly asked: We plan to go public this time to raise funds for ten years. This is the number approved by the State Council, and this number is unlikely to be compressed, how much can Kumho share? He looked at Ye Jianbin and then at Zhang Ke.

Kumho can spend 200 to 300 million U.S. dollars, Zhang Ke said, In addition, Kumho is quite a bit in Southeast Asia. I can make a promise to Mr. Liu here that at least 400 million U.S. dollars will be shared by China National Offshore Oil Corporation. The dollar financing mandate...

Enough is enough. If Kumho stands up and undertakes a financing task of at least 400 million US dollars, it will give other investment institutions and small and medium investors strong confidence. As for the proposal to boycott Mitsui \u0026 Co., CNOOC will take this as a matter of course. attitude.

Liu Chengwei also knows in his heart that the head office only has 4.2 billion in cash, but the debt is as high as 12.6 billion. The financial pressure is very high. If he wants to break through the suppression of PetroChina and Sinopec, the overseas listing financing plan cannot be tolerated. If there is a mistake, otherwise, it will be far from being able to achieve a large-scale breakthrough by relying on the financial support of more than one billion to two billion yuan from the central government. If we can raise one billion US dollars overseas this time, we will be able to add another five dollars to the bank in China, and we will have an extra 134 billion in cash in hand, and the pace of expansion can be even greater. Be more proactive when collaborating.

Xie Lei's face was beaming with joy. The haze that had weighed on his heart these days disappeared at once, and he felt a little strange. Kumho had never had contact with them before. If Kumho really has a financial investment plan for CNOOC, isn't it? Should I have contacted here long ago?

Kumho's participation in CNOOC's overseas listing plan is at best a financial investment, and it cannot directly intervene in CNOOC's operations. Even if Kumho contributes 300 million US dollars, it only accounts for 7% of CNOOC's total equity, and it is absolutely controlled by CNOOC. In contrast, none of them are qualified to recommend board members.

Kumho will build a 10-million-ton steel industry base through Dongshan Iron and Steel and Donghai United Iron and Steel Group, and will eventually integrate into a large steel group. Kumho has the right to recommend two board members in name. In addition, Kumho Commercial has The iron and steel group's raw material iron ore import purchase right part or all has a degree of influence on the iron and steel group that is absolutely incomparable with ordinary financial investment.

Even if you know that participating in the overseas listing of state-owned enterprises in the form of financial investment will bring good benefits, but Kumho Shoji is not here. Kumho Corporation wants to penetrate and influence the industrial chain more and promote the balanced development of the upstream and downstream of the industrial chain, so it is more willing to directly promote the investment in large-scale projects such as the Dongshan Island Port Construction Project and the 10-million-ton steel industry base.

The situation of CNOOC should be regarded as a special case. Sniping Mitsui \u0026 Co.'s ambitions for demarcation oil and gas fields is one aspect. Tingdongshan Port, in Jiangnan Province, is in the fringe area controlled by CNPC and Sinopec.

When Zhang Xie mentioned this level, Tang Xueqian, who had been silent for a long time, said: The province also hopes to see that China National Offshore Oil Corporation can be successfully listed overseas. After all, CNOOC has successfully launched the development of the Boundary Oil and Gas Field. The production support we discussed today Only the base project will have practical significance - in addition, although the Central Unification Department intends to integrate Jinshan Petroleum's refining business and gas station business with Sinopec, the speed of Sinopec is always a bit slow...

Only then did Liu Chengwei understand the intention of Tang Xueqian, Zhang Ke, and Ye Jianbin to visit late at night. Kumho participated in CNOOC’s overseas stock business in the form of financial investment. The 6th industrial base of CNOOC.