Chapter 164 Things Have Changed, Worst-Case Plan
Chapter 164 Things Have Changed, Worst-Case Plan
"Mr. Lin, I am familiar with international oil prices."
"The price of one ton of crude oil is at least twelve dollars."
"You're only willing to offer two million for the rights to mine one million tons of oil. Isn't that a bit too low?"
Ma's compound.
While Kong Yongzhi had already prepared the final script for Lin Yi, Lin Yi also began formal negotiations with Ma Jizu.
At this moment, although Ma Jizu's tone was calm, his expression was quite unpleasant.
He was so excited yesterday when he received news from the exploration team that they had discovered reserves of one million tons.
They were just waiting to sign the agreement with Lin Yi, and a huge sum of money would arrive instantly.
Good heavens, the mining rights for one ton of crude oil cost two dollars.
Even if further exploration yields more discoveries, the budget will likely be capped at around 20 million!
In the past, he would probably have accepted it readily.
This guy in front of me has already borrowed 80 million from the bank, and after all this time messing around in the Northwest, he only offered this little bit as a benefit to the Ma family. It's really too much.
"Commander Ma, are you referring to the price of US crude oil?"
"Yes, I specifically asked someone to inquire, there's absolutely no mistake."
As he spoke, Ma Jizu chuckled and said, "Mr. Lin was able to bring in Americans to conduct the survey, so he must know the price better, right?"
"Of course, if converted to legal tender, that is indeed the price per ton."
"Moreover, this is just the price of leaving the oil field."
Lin Yi said calmly, "And the price for delivery to the refinery usually increases by another 20 percent."
"As for the various oil products produced from one ton of crude oil at the refinery, the price will increase by another fifty percent."
"Then it is transported to the port, then sailed across the sea, and when it arrives in China, the price will be increased by another 50% on top of the loading price."
"By the time it comes to the final sale, the price is about three times that of crude oil."
"That's thirty-six pieces!"
Ma Jizu was shocked when he calculated the latest results.
Thirty-six yuan, and you only give yourself two yuan? Are you even human?!
"Yes."
Hearing this, Ma Jizu was so angry he laughed: "Ha, Mr. Lin, you've gone a bit too far."
"No no no."
Lin Yi waved his hand and said, "Commander Ma misunderstood. You only calculated the final price, but you ignored what you had to go through in the process to get those thirty-six yuan."
"Transport, refine, transport again, pay taxes, sell."
“Every step involves investment.”
"Especially transportation. Putting everything else aside, have you considered how much it would cost to transport a ton of crude oil from Yumen Pass to Jinzhou?"
Ma Jizu: "..."
Seeing his dumbfounded expression, Lin Yi smiled and shook his head: "Commander Ma, making money isn't that easy."
“Especially in the Northwest, development is lagging behind. Not to mention railways, there isn’t even a highway to Yumen Pass.”
"If we rely on trucks for transportation, just transporting one ton of oil from Yumen to Jinzhou would probably consume a whole ton of fuel."
"Just this one thing alone means we'll have to cut the thirty-six pieces in half."
"After deducting other costs, how much profit do you think I have left, Commander Ma?"
Upon hearing this, Ma Jizu's facial muscles twitched.
He really hadn't considered that.
Seeing his expression, Lin Yi shook his head: "So giving Commander Ma two yuan per ton of crude oil is already my bottom line."
"Please forgive my limited ability to say more; this business is really not going to continue at a loss."
Ma Jizu grinned.
If you calculate it that way, two yuan is indeed a lot.
However, for the Ma family, it was still too little!
Two million, even with careful budgeting, is only enough for the army's expenses for two months!
Just as he was feeling troubled, he heard Lin Yi say, "Of course, if Commander Ma uses the mining rights as shares, he should be able to earn more."
"hehe."
Ma Jizu chuckled dryly and said, "Mr. Lin, I can't make the decision on this matter. I need to report it to my father."
"Then the same old rule applies, I'll await good news?"
"it is good!"
Lin Yi left with his men.
As soon as they stepped out of the Ma family compound, before Liu Jing, who was scratching his head in frustration, could even speak, Fang Chang asked first, "This business really isn't profitable?"
"According to the calculations I gave Ma Jizu, the profit margin is indeed very low."
As Lin Yi spoke, he chuckled softly, "However, if we use pipelines for transportation, the profits will be much greater."
"Or we could build the oil refinery in Yumen Pass and transport the finished oil directly, which would also reduce transportation costs."
“Right now, pipeline transportation is out of the question. Without 30 million tons of crude oil reserves, I would go bankrupt laying more than 1,000 kilometers of pipeline.”
"Therefore, the most suitable option is to build an oil refinery, which in turn involves building a supporting power plant, which must be a hydroelectric power plant."
“Danghe is a good choice, and the investment wouldn’t be too large.”
"However, we'll have to see what Ma Yuanqing decides first."
Are you worried that he will seize the property by trickery or force?
Fang Chang is always concise and to the point.
Lin Yi nodded: "Yes, if he still insists on not investing, we can only transport crude oil in the early stages."
"In short, let's start with a small investment and see the results."
"If he can keep his promise, then we'll gradually invest more."
Hearing Lin Yi say this, Liu Jing, who was standing to the side, felt that Mr. Lin had considered everything very thoroughly.
Doing business in this godforsaken place requires extreme caution.
Otherwise, I'd have to lose my underwear!
Fang Chang, however, frowned upon hearing this: "It's too much trouble, let's just not do it."
"Old friend, you can't rush things. In business, patience is sometimes very important."
Lin Yi chuckled and bent down to get into the car.
Then came the waiting, but three days passed without Ma Jizu showing up.
Not to mention Liu Jing was already muttering curses, even Lin Yi, who had maintained a calm attitude for the past two days, couldn't help but become irritable.
This is something that shouldn't take three days to consider.
Even if you're not satisfied with the price, you should still come in person and negotiate.
After lunch, he paced around the yard for a while, then suddenly stopped, turned to Ah Sheng who had been following him, and said, "I'm not waiting anymore!"
Ah Sheng: "???"
"Back to Sichuan Province, let's go now!"
"Oh."
After instructing Ah Sheng to pack his things, he called Liu Jing over and asked, "Are you afraid of dying?"
The question he posed left Liu Jing completely dumbfounded.
"Mr. Lin, what happened?"
"Things may have changed, and I need to leave here, but I'm afraid I might misjudge the situation and cause further delays."
"……Understood."
The shrewd Liu Jing figured out what was going on in the blink of an eye.
Without the slightest hesitation, he said, "I will stay. If the Ma family doesn't come today, I will take the initiative to visit them at this time tomorrow and tell them that Mr. Lin has returned to Sichuan Province on urgent business."
"Old Liu, my trust in you has not been in vain."
Lin Yi patted him on the shoulder.
"If it weren't for Mr. Lin's kindness, I, Liu Jing, would probably still be struggling to make ends meet."
"Don't take the carriage, split up and leave the city on horseback."
Fang Chang appeared behind Lin Yi like a ghost...
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