Chapter 311 Our Stage (Bug Fix): Building a Hospital
What should Wang Xiao do then? Just let it be.
The person who wanted to lure speculators and traders to invest in Jiangdong was Secretary Fang, the top official of the provincial government.
It's not like it's Wang Xiao.
At most, she can act as an intermediary; whether or not the resources can be secured depends on the Jiangdong Provincial Government itself.
As for Wang Xiao, her focus is on oil and gas fields.
That's her real career.
As the helicopter rotors churned up white eddies above the Sea of Okhotsk, Wang Xiao gazed at the scattered sea derricks below the porthole and had never found this sea area so captivating.
Sakhalin Island in June is full of hope and beauty.
Ivanov was still babbling on and on: "My God, it actually produced oil!"
He's going crazy if he doesn't get the oil out soon.
With a deafening roar, the small helicopter landed on the giant deck.
When Douglas, the representative of the American oil company who was greeting the client, started by saying the same thing: "God bless us, we've finally struck oil!"
Compared to the anxious client, he was the one who was truly terrified.
What if the $1 billion is burned through and no oil or gas is found, and the client is unable to invest more funds?
The project was taken back by the Russian government, and the bidding process was restarted.
As for when someone will be able to take over, only God knows.
Douglas, who wasted a lot of time in this sea area, doesn't know how he'll regain his position when he gets back to the company.
Now things are looking good; oil has finally been found, and the project can continue. If we're lucky, this area will continue to produce oil and gas for at least the next twenty or thirty years.
Wang Xiao stood on the deck, his gaze sweeping over the various oil and gas pipelines and carbon dioxide reinjection devices; looking around, the blue sea and sky stretched endlessly.
In that instant, she even suddenly understood the classic line Jack shouted at the sea when he boarded the Titanic—"I'm the king of the world!"
The June sun was so bright that the metal deck was scorching hot, and the salty smell of the seawater mixed with the smell of diesel fuel was simply intoxicating.
Douglas smiled at her and kissed the back of her hand: "Beautiful lady, I'm afraid I'm too ashamed to face you."
Wang Xiao responded with a smile.
Engineer Lin from CNOOC came over to congratulate her, and said with great emotion, "Finally, we've produced oil. I was really afraid it would all be for nothing."
Seriously, as well after well was drilled, reaching depths of tens of thousands of meters, no oil or gas was found. They all suspected that Wang Xiao and Ivanov had been tricked by the Americans and the Japanese.
This is not impossible at all.
They were complete novices in the oil industry; besides having money, they knew nothing. What good were those fancy survey reports? Maybe the other party had already discovered the problems but wasn't saying anything, and they were just trying to screw you over—what could you do about it?
As for why the Americans and Japanese would go to such lengths to cheat them? It's clearly a lose-lose situation.
Haha, it's hard to say about these things.
From a profit perspective, if this development project fails, the Russian federal government will likely be unable to find someone to take over the Sakhalin oil and gas field project for at least the next few years.
The newly rich in Russia and the newcomers in the global oil industry would also be apprehensive if they saw a billion dollars being burned without any results.
In this way, even if the US and Japanese conglomerates don't get involved now, they still retain actual control over the development of oil and gas fields.
If the Russian government, eager to develop Sakhalin Island's oil and gas resources, wants to bring its people back to the negotiating table, it's hard to say who will be the kingpin.
Of course, now that the deep-sea oil well has finally produced oil, Lin no longer needs to voice these unspoken speculations. All he needs to say now is congratulations.
Wang Xiao accepted the offer with a smile, and then began to focus on the key points—producing oil was only the first step; the crucial questions were who to sell the oil to, what they wanted to sell it to, and how to transport it.
The boss doesn't know how to develop oil. From last year until now, she and Ivanov have been nothing more than human money-printing machines, serving as background figures.
Now that the oil has been released, it's finally their turn to take the stage.
What is the daily oil production?
Douglas proudly gave the answer: "Twenty-five thousand barrels, we have already been able to reach a production of twenty-five thousand barrels."
Good heavens, for a project that has just struck oil, this output is enough for him, as the representative of the contractor, to proudly display the pride of American oil exploration and extraction technology in front of the client.
However, Miss Wang did not show a satisfied smile. Instead, she frowned upon hearing this: "Twenty-five thousand barrels? What can twenty-five thousand barrels of oil do? It's not even enough to pay for the icebreaker."
Sakhalin Island is frigid year-round and has no ice-free ports, making transportation costs a fatal flaw—there are no oil pipelines, so they can only rely on icebreakers for transport.
Wait a minute, didn't Japan build an oil pipeline here when they occupied Sakhalin Island?
That's right. In 1937, the same year the Marco Polo Bridge Incident occurred, the Japanese did indeed build a 6-inch oil pipeline near Oha on Sakhalin Island.
According to the data, this line extends from the oil storage facilities on the coast to the offshore mooring buoys 2-3 kilometers from the coast, where large oil tankers can anchor and load oil.
From a theoretical perspective, Wang Xiao and his team could make full use of this oil pipeline to solve the transportation problem.
However, there is always a gap between theory and practice. The current reality is that the oil pipeline built by the Japanese has withstood more than half a century of wind and rain, and is very old and severely corroded. The cost of repair alone is 120 million US dollars, which is more expensive than building a new pipeline.
Moreover, while six-inch pipes were indeed a large investment at the time, half a century later, what was once considered large is now small and simply cannot meet the needs of a 10,000-ton cruise ship.
Even more critically, with the collapse of the Soviet Union and the dramatic changes in relations between Japan and Russia, the question of who owns the civilian facilities left behind by the Japanese on Sakhalin Island, a former Japanese colony, remains controversial.
During last year's Japan-Russia summit, Russia acknowledged that Japanese companies retain historical rights to certain facilities on northern Sakhalin Island.
What does this mean? It means that if Wang Xiao and his team want to use the existing pipeline, they will have to pay more money.
As a result, the cost of paying Japanese royalties plus repair costs increases the cost per barrel of oil by $4.20.
Haha, given the current trend of international crude oil prices, if they were to pay this money, they would be doing all the work for free.
What if we can't use oil pipelines? We can use oil tankers.
But that's the next topic to discuss. Right now, Wang Xiao can't let Douglas off the hook: "I don't care what method you use, sir, I need you to come up with a full-capacity production plan within 48 hours."
She sneered, "The international crude oil price is what it is, and there's nothing we can do about it. But it's one thing to burn money every day before we find oil. We can't afford to find oil and still not see any money."
She gestured, "If that happens, the shareholders in Moscow will tear us to pieces."
The sea breeze whipped up waves that crashed against the porthole, instantly shattering them into bloody foam.
Oh no, it's snowflakes. The bright red color is just an illusion caused by the refraction of sunlight.
Wang Xiao exclaimed in admiration, "Look, how beautiful!"
Douglas felt his throat tighten, as if it were being choked: "Miss Wang, such a short time is not realistic."
Wang Xiao smiled. The smiles of Eastern women are always so gentle, but they reminded Douglas of the serpent in the Garden of Eden.
She flicked her tongue, her voice sweet: "Sir, I believe you can do it. You've persevered for a year, there's no reason you can't last 48 hours."
Douglas suspected he was being threatened, but her soft voice made him doubt that the threat was just his overthinking.
Wang Xiao had already left him behind and moved on to the next topic: "What about oil tanker transportation?"
The supervisor, who had been working on the Sakhalin Island project for a year, quickly reported to his boss: "Based on a comprehensive assessment, if we convert oil tankers to transport oil, the cost per barrel will increase by $2.80, and the conversion time will be shorter, with the work completed in 90 days, which is much faster than using oil pipelines."
This sounds absurd. The oil pipeline is already in place, so how can it be slower to use than a modified oil tanker?
Anyone who raises such a question has absolutely no understanding of the Russian Federation's bureaucratic system.
Have you seen Zootopia? That sloth Flash, who leisurely staples books and takes photos, would be driven crazy by the Russian bureaucracy.
Slow, incredibly slow. They can stretch the smallest thing into seventy or eighty procedures, each requiring a stamp, and each stamp comes from a different, irreplaceable person.
The project managers estimated that just getting the oil pipeline operational would take eighteen months, assuming everything goes smoothly.
If any leader says "let's put it aside for now and see" at any stage, you don't know when you'll be able to wait.
In contrast, although the conversion of oil tankers was a large-scale project, it was actually faster because they had complete control over the entire process from start to finish.
Wang Xiao scratched his chin: "What do you mean by 'modifying an oil tanker'?"
Ivanov explained to her: "It means converting an icebreaker into an oil tanker."
They got a great deal, because the idle icebreaker was acquired at scrap steel prices. Well, nominally, it belonged to the Kuznetsk Steel Plant; otherwise, the sale wouldn't have been possible.
Wang Xiao nodded, quite curious: "Where will it be renovated?"
This order wasn't too big or too small, but for the Russian shipyard that was in crisis, it was still a source of revenue.
However, when it came to doing business, Ivanov's business acumen kicked in, and he did not show favoritism towards his compatriots by awarding orders to Russian shipyards.
One reason is the distance; the climate has led to Russian shipyards being concentrated in the Baltic region, which is too far from Sakhalin Island.
On the other hand, due to the collapse of the industrial system and the continued deterioration of the economy, Russian shipyards have found it difficult to organize normal production.
Ivanov had no interest in taking such an unnecessary risk, so he accepted Lin's suggestion and placed the order with the Dalian Shipyard.
Next, the ship was driven into the shipyard, the rusty Soviet oil pipeline was removed, and a Japanese-made cold-resistant oil pipeline was installed. Then, domestically produced steel was used to patch it up.
As for why not choose Japanese shipyards, which have more experience in this area? The reasons are readily available.
Labor costs are so high in Japan. A skilled worker like this would be paid the equivalent of 30,000 Chinese yuan per month in Japan, while a worker at the Dalian Shipyard would only need 500 yuan.
The cost of skilled labor determines the price range a shipyard can offer.
Moreover, the Dalian Shipyard is close to Sakhalin Island, much like a car factory in Beijing providing maintenance services for a fleet of vehicles in Mongolia, making the work convenient.
Wang Xiao decided to trust the expertise of professionals, nodded, and continued to the next topic: "What about the quote? What quote did our buyer give?"
The supervisor immediately reported: "Tokyo Mitsui's offer is $14.2 per barrel. That's $1.8 lower than Kuwaiti crude, but they're willing to pay 30% upfront."
Wang Xiao accepted the telegram he handed over.
The Japanese are truly shrewd in business; this price just covers the total cost of $22 per barrel, including the cost of the icebreaker.
She quickly calculated in her mind, tapped the telegram, and made up her mind: "Add a supplementary clause, requesting Mitsui to assist in the introduction of Hitachi Seiki's CNC machine tools, model HC-800."
The boss had no intention of making things difficult for her subordinates. She emphasized, "When the Coordinating Committee for Multilateral Export Controls (COCOM) was still in power last year, it was among the civilian equipment whose export restrictions were lifted. It is capable of processing precision components for oil pipeline valves. It was the Japanese Ministry of International Trade and Industry that kept blocking the export license."
With Mitsui's public relations skills, dealing with a mere Ministry of International Trade and Industry would be a piece of cake.
The supervisor accepted the order and quickly wrote down the boss's requirements.
This is essential; the entire process must be under their control.
The Japanese people are not to be trusted, and neither is the federal government.
Don't be fooled by how nice they were before; that's because they hadn't produced any oil yet, and they didn't even know if they would. So, oil and gas fields are a hot potato.
Now that the oil has been extracted, it's like a golden goose, a golden goose that everyone is envious of.
Due to contractual constraints and the watchful eyes of the international community, the government dares not openly rob, but it is almost a certainty to sabotage and extort money behind the scenes.
As businessmen, all they can do is try their best to avoid being taken advantage of and ripped off again and again.
It has to be said that people who are close to each other know each other best.
During the day, the supervisor had just finished complaining about the gluttons of the federal government; while having dinner, Ivanov received a call from Moscow.
Oh, how wonderful! A June evening on Sakhalin Island is so beautiful; the last rays of the setting sun bathe the sea and sky in the same orange-red hue. The whole world is as beautiful as a postcard.
An unexpected phone call is like ink dripping onto a postcard, staining its beauty.
Ivanov frowned, listened to the phone call, kept saying "uh-huh," and finally hung up. His face immediately turned into a poker face, looking very dissatisfied: "This is awful. I have to go to Moscow."
Wang Xiao raised an eyebrow: "What's wrong? Did something happen?"
“Donation, our donation to the cathedral.” Ivanov almost rolled his eyes. “The mayor said he appreciated our generosity and hoped to speak with me.”
Although they abandoned the Moscow Third Protective Equipment Plant, they still needed to maintain their relationship with the Moscow city government, especially with the mayor; they had to cater to his preferences.
So they wrote the check for $50,000 very readily.
Wang Xiao laughed: "Looks like everyone's eyeing the Sakhalin project."
Otherwise, the donation was made several days ago, so why is the mayor now so eager to meet with Ivanov?
Ivanov rolled his eyes. In Chinese terms, the mayor's intentions were obvious to everyone.
Wang Xiao teased, "Then tell me, what's he planning?"
Ivanov ate heartily, expressionless: "What can we do? Slaughter the fat sheep, of course."
Wang Xiao looked at the lamb chops on his plate and laughed heartily: "My dear Ivanov, you mustn't underestimate yourself; you're the one who eats lamb."
Ivanov swallowed the tender lamb chop, took a sip of wine, swirled the glass, and watched the amber liquid ripple in it.
See, just a small gesture from the person raising the glass can create a huge uproar in the glass.
He silently finished the rest of the lamb chops, wiped his mouth, and made a request: "Your Majesty, you're coming with me."
Wang Xiao shook her head: "I can't go, I'm too conspicuous."
The donation was made jointly by her and Ivanov, but the mayor only wanted to see Ivanov, which shows that foreigners were not welcome at this time.
She joked, "I don't believe in God, so I'd better not bother you."
Ivanov's brows furrowed even more, almost stubbornly: "No, you're coming with me."
He didn't like this feeling, the feeling of being separated from Wang.
This made him feel empty, as if his heart couldn't find its bottom.
He went to Moscow to fight.
How can you fight without your comrades by your side?
Wang Xiao still shook his head: "Sakhalin Island is also a battlefield. We can't afford to neglect one for the other. At critical moments, we must leave people here."
Well, Ivanov couldn't argue with that.
But he was still unhappy.
Although he has finally officially turned thirty this year, he believes he still has the right to act like a child in front of certain people.
Helpless, Wang Xiao could only try to coax him: "Hey, darling, what we should be concerned about now is what kind of game the mayor has set up, waiting for you to make your move?"
Ivanov rubbed the damp towel in his hands as the last rays of the setting sun outside the window were completely swallowed by the sea.
The lights on the distant derricks looked like scattered diamonds on the Sea of Okhotsk.
"I don't know." He shook his head. "I suspect it's related to oil. Maybe—"
He sneered, "Maybe the government wants us to build a long pipeline to transport Sakhalin's oil to Moscow, well, or anywhere else they want it to go."
There was no hope of daylight, but the lights were on, so the eyes of the people under the lights gleamed: "Avoiding Chechnya?"
Russia in 1994 was not peaceful, with many republics causing trouble. Among them, the Chechen Republic was the most disruptive and was in fact already in a state of independence.
Chechnya is crucial in one respect: it is a vital oil transportation route. Numerous pipelines pass through the Chechen Republic, transporting Russian oil and gas to the CIS countries and Europe.
For Russia, this is an important source of fiscal and foreign exchange revenue.
The empty plates had been removed, and Ivanov's fingers gently rubbed against the wine glass.
He hesitated slightly: "I don't know."
Russian politics cannot be viewed through the lens of ordinary people, because the priorities of officials often raise questions about their true stance.
Wang Xiao soothingly squeezed his arm, like encouraging a child who didn't want to take an exam to the exam hall: "It's okay, we'll deal with whatever comes our way. We'll adapt to the situation."
There are no other good solutions.
Who can blame him when the mayor is currently enjoying great success?
On June 10th, the long-running battle between the market and the First Deputy Prime Minister ended with the President clearly taking sides, making the former the winner.
The privatization process in Moscow is not part of the overall Russian context, and how it proceeds is up to the mayor.
When they donated $50,000 to build the Cathedral of Christ the Saviour, wasn't it because they believed the mayor would win?
Now that they've won, they have even less reason to back down.
Moreover, Punonin is still lurking in the shadows.
They had to climb into the mayor's network of connections.
Ivanov flew to Moscow in a huff. That same night, as Wang Xiao was about to go to sleep, he made a long-distance call from Moscow to Sakhalin Island, finally solving the mystery.
"The mayor wants me to build a hospital in Moscow."
Wang Xiao asked directly, "How much is the project cost?"
"No payment for the project." Ivanov was practically cursing. "To build a hospital for free."
Wang Xiao pressed further, "Then what about the compensation? Did he promise anything?"
“Nothing was promised,” Ivanov cursed. “I’ve really become the fat sheep.”
The worst part was that he couldn't refuse. This made him feel terribly.
Wang Xiao thought for a moment: "Did he say exactly where it would be built?"
“No,” Ivanov said dejectedly. “They said that after I selected a location, the city government would assist with the land acquisition.”
But what does this mean for him? Healthcare in Moscow is free; they live off government funding. How will he recoup the construction costs after the hospital is built? Or will he have to cover the hospital's future expenses as well?
Isn't the hospital and school he donated to the farm enough? You can't just take advantage of every little thing.
Wang Xiao laughed: "That's good. You can build the hospital next to the container market. That will make money."
Due to various factors, the middlemen and traders in the container market are basically unable to enjoy Moscow's free healthcare system.
Moreover, due to factors such as language barriers, they are unable to receive medical treatment in Moscow hospitals even if they have the money.
So if they really couldn't bear it anymore, they could only go to the suburbs to find the village doctor on the farm, who used to be a barefoot doctor, to help relieve their pain with acupuncture and other methods.
“We’ll build them a hospital, charge them according to normal market rates, and open it to the public.” She sighed. “We have to discuss this expense with the Moscow government, otherwise these middlemen can’t afford to support so many free patients.”
She then smiled and comforted Ivanov, saying, "Look on the bright side. Without this opportunity, we wouldn't be able to build hospitals openly and legitimately for these middlemen. Consider it as providing supporting facilities for the container market."
All right.
What else can we do?
Ivanov reluctantly agreed.
He gritted his teeth as he put down the receiver.
One day, he will gain a greater voice, instead of being a sitting duck.
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If there's no update by 8:30 tomorrow, it means my outline isn't finalized. I'll write again once it's correct. [Translated]
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