Although Zhang Chao did not see the company's bid, he also had his own understanding of the bidding price of the oil field. The 60% bidding share is a threshold.

1994 was not the era of $100 for barrels of oil. If inflation was taken into account, the oil prices in the 1990s were cheaper than in the 1970s after the oil crisis. It was under such oil and dollar prices that the Clinton administration created a long-term economic prosperity. Coupled with Lewinsky and his belt issues, this should be the most pleasant era for Americans. Of course, it was also an era of relatively wonderful oil prices. The next time I encountered this situation, it would depend on whether the shale gas and the economic prosperity index cooperated.

If it is a price of $100, oil companies can laugh at their tongues if they get 40% of the profit, because the cost is so much, and the price rises very quickly, so that $100 per barrel of oil in many places can get $80 or even $90 in profits. The 15% share agreement in this way means $12 or even $14 in revenue.

However, even if oil companies expect oil prices to rise, they have to face the current oil prices and current shareholder expectations. In the range of $20 to $30, deducting $10 to $20 and taking out 65% of the profits, many wells may have less than $6, which will be much less than the future 15% profit.

Considering the large development costs in the early stage and the risks borne by it, earning $5 or $6 per barrel of oil is almost the same for many companies as signing service agreements. After all, service agreements are fixed per barrel, and in the first 10 years of the 21st century, oil companies are mostly able to get about $5 per barrel of service agreements. In this way, although there is no joy of over-the-top oil, the profits are stable.

Of course, the situation in Azerbaijan also has its own characteristics. On the one hand, the oil development cost here is higher, and onshore oil basically has to drill more than 3,000 meters, and offshore oil is no longer shallow seas below 20 meters, but continental shelf oil at a depth of hundreds of meters. Therefore, the cost of oil extraction will be closer to US$20, so that the profits are meager in the years when oil production begins. On the other hand, Azerbaijan grants concessions for a very long time, whether it is 30 or 35 years. It means that this is an asset that is constantly increasing.

However, how high the value of the future determines the limit of your current efforts. In Zhang Chao's opinion, 60% is already a very high amount, and it was somewhat beyond his expectations that BP company could cross so simply.

What made him even more doubtful was what kind of bidding share would Sucheng set for Dahua Industrial? Judging from the bidding documents for the four oil fields currently announced, 60% is obviously less, but is it worth it to pay more?

This problem made Zhang Chao feel pain in his brain.

He quickly decided to give up this meaningless melancholy. He coughed and began to take notes on his own notes.

The celebrations of bp, Total, and more than a dozen other companies also ended quickly, making the conference hall quiet slowly.

Unlike the four company groups formed by Dahua Industrial. When bp bids for different oil blocks, it will choose different companies to form a company group. This method is naturally more time-consuming and energy-consuming than a fixed company group. However, if you choose correctly according to local conditions, the chance of successful bidding will also increase.

At least one thing, fixed company groups like Dahua Industrial will not obtain 3 oil fields in a row like BP.

Aliyev would not do this, either from the perspective of economic or political considerations.

Another half hour later, a free breakfast began to be served in the conference hall, two slices of Western bread, two slices of ham or bacon, and a cup of coffee.

There are not many things, but they are all hot.

Su Cheng swallowed all the food on the plate in just two minutes after a bite of bread, ham and coffee.

Zhang Chao couldn't help but smile and said, "Dong Su has a good appetite."

"There is no midnight snack, and if you don't have a good breakfast, I'm afraid I won't be able to hold it up at noon." Su Cheng held the coffee and warmed his hands, revealing his sleepy appearance after eating.

Zhang Chao looked at his expression and said curiously: "The oil block of No. 6 will be coming soon. Are you really not worried?"

Su Cheng glared at him and said, "How come he is not worried? I'm not trying to stabilize my morale."

"Ah?" Zhang Chao never dreamed that it was the answer.

Qin Yun next to him also put down the bread in shock: "Dr. Su!"

Xiaopang showed his head very smartly and said, "I know, just like Xie An from the Eastern Jin Dynasty, he was very excited and pretended to be calm. He kicked all the clogs off with his last kick."

"It's the teeth of wooden clogs." Qin Yun corrected.

Xiaopang slapped his forehead and said, "So... is this how Wutiao came from?"

Su Cheng coughed suddenly, and slapped Xiaopang on the forehead again, saying, "I think you don't want teeth anymore."

"It hurts..." Xiaopang covered the red place and said with nostalgia: "Oh... Master, you haven't hit me for a long time."

"Bang!"

This time it was Qin Yun beaten her. She also twisted the fat man's ear and said in disgust: "You spineless guy, are you uncomfortable if you don't get beaten-"

"Of course not, I'll just talk... Look, the microphone is back." Xiaopang used Little Aliyev to divert his gaze.

Qin Yun and others indeed turned their eyes forward.

Aliyev, a little faceless, said: "The final result of the No. 5 Oilfield appeared. After the judgment of the President, the company that won the bid was Chevron. The basic share increased by 14.1%, the signing fee increased by 45 million US dollars, the franchise exploration time was 3 years, and the franchise took effect time was 35 years..."

Zhang Chaoda opened his mouth and couldn't close it. The increase in the 14.1% base share means that after obtaining more than 10 million barrels of oil fields, 64.1% of the profits must be handed over to the oil-producing countries.

Of course, this number cannot be said to be an unprecedented number, but this is almost what Zhang Chao believes to be a division limit.

If this limit is exceeded, oil companies will significantly reduce their profits. According to the analysis of each evaluation team, they believe that such high-value share indicators will appear in the two best-performing oil fields, No. 8 and No. 11.

The No. 5 oil block does not give much information to the company, so the risks the company bears are much greater. If you really only get an oil field of tens of millions of barrels, plus a contract amount of 65 million, Chevron will have to suffer huge losses.

"Chevron is crazy." Zhang Chao gave an evaluation without hesitation.

Qin Yun quickly calculated and said, "They must have given the No. 5 oil block a high valuation. Is this an offshore oil field? What is the activation index?"

"$4,500." Zhang Chao replied.

The activation index is a parameter used to brighten a new oil well and is usually expressed in how many dollars per barrel per day at stable output.

The activation index of $4,500 means that the cost of digging an oil well with a daily output of 100 barrels is $450,000.

The oil area with an annual output of 10 million barrels means that the daily output is more than 30,000 barrels. Calculated based on the activation index of Azerbaijan, at least US$130 million is required.

The 65 million signing fee means Chevron is ready to invest nearly $200 million before seeing the surging oil tide. This has not calculated the cost of their promise to Aliyev.

In fact, if it really only has 10 million barrels of production, it will not be easy for Chevron to see profits within ten years.

Qin Yun made a judgment, saying: "It costs at least 25 million barrels. They must have judged that the No. 5 oil block has a production capacity of more than 25 million barrels."

A production capacity of 25 million barrels means that the development cost will exceed 325 million yuan, and the total cost on the surface will exceed 400 million US dollars.

Zhang Chao couldn't help but shook his head and said, "There is no need to take such a high basic share ratio. 11% increase is more than enough. Who would buy such a high price and compete with them?"

As soon as he finished speaking, the members of the Shell bidding team raised their hands and shouted, "We have opinions."

"What?" Little Aliyev, who was about to sit down, seemed not surprised.

Shell's representative picked up the outline that several people had just discussed and said: "In the bid we submitted to your country, the basic share increase we are willing to bear is 14.2%, and the signing fee increase is 40 million US dollars. We request a review."

"I understand." Aliyev nodded, and also pulled out a piece of paper from the bottom and read: "Because the added value of the base division between the two parties is similar, and the Chevron bidding group's signing fee is more added, in the early stages of Azerbaijan construction, we believe that this amount is more beneficial to the country. In addition, the Chevron bidding group has a clear time allocation for oil field construction and plans to build supporting refineries. Therefore, we finally believe that handing over No. 5 oil blocks to Chevron development is more beneficial to Azerbaijan's interests..."

The bidding values ​​of the two sides are close, so the power belongs to the Azerbaijani government. Shell's representative also expected this. He argued for a few reasons and finally stopped. In the eyes of other companies, this only proves that the public relations behind Shell are not doing well enough.

Zhang Chao was dumbfounded and murmured to himself: "Shell actually produced 14.2%... Can this still make money?"

"So many companies, many people are considering, first of all, getting oil blocks." Qin Yun said and looked at Su Cheng and asked honestly: "Can we do it?"

"Look." Su Cheng also sighed a little. If he hadn't made so much preparation, he would have plunged into this bottomless pit.

Perhaps in order to avoid excessive discussions between companies, Aliyev quickly came up with the results of the No. 6 oil field and said: "I now announce that the company that has obtained the No. 6 oil block..."

With a "wow", at least hundreds of people sat upright in front of him.

...
Chapter completed!