Chapter 360 The Great Crisis: Substitutes for the Nevtegorsk Oil Field
The negotiations fell silent, only to be amplified by the howling wind, the roar of machinery, and the groans and curses of the wounded.
Amidst the cacophony of background noise, Wang Xiao's voice remained steady: "Rebuilding an outdated refinery using second-generation technology would mean that by the time it goes into production in 1997, the market and technological landscape will have changed, rendering it useless. In contrast, a plant equipped with Mark III technology will be the most advanced refining base in the Far East in 1997. It will maximize the value of crude oil and respond most quickly to the Japanese market's demand for high-quality refined oil products. Time is money, and it's also market dominance."
She spread her hands, "This is in the common interest of Wuzhou and Mitsui."
Watanabe Taketa shook his head: "Miss Wang, second-generation technology won't be obsolete so quickly. I believe that by 1997, Mitsui's second-generation technology will still have a vast market."
He doesn't want to consider technological upgrades at all right now.
JX-900 Mark III is Mitsui's core technology, and its early transfer involves huge commercial risks and technical barriers.
How could I possibly let go so easily?
There is only one reason that keeps him sitting at the negotiating table: sunk costs—the hundreds of millions of dollars lost due to being completely excluded from the refinery plan.
Wang Xiao, however, did not intend to use his trump card to continue threatening the other party.
Forced relationships are never sweet; in business, she always strives for win-win outcomes.
"Mr. Watanabe."
She placed her hands on the table, adopting a sincere and open-hearted posture, "If I were you, I would definitely agree to upgrade the technology, because this is a great opportunity for the Mitsui Group."
Watanabe Taketa closed his eyes slightly and sighed inwardly: She really is like a snake, a snake as all-pervasive as the Siberian cold wind, like the snake in the Garden of Eden that tempted Adam and Eve to eat the fruit of knowledge, betraying God.
But he couldn't stop her from continuing.
In fact, whether he stopped him or not, Wang Xiao would continue on his own, asking, "Is Mitsui Group only interested in the oil and gas of Sakhalin?"
She shook her head, her tone resolute, "As a major international conglomerate, Mitsui's appetite shouldn't be so small."
"Siberia has countless oil and gas fields, and the CIS countries in Central Asia also have abundant oil and gas resources that are waiting to be developed. These are all good opportunities for the Mitsui Group."
"To enter these regions, the Mitsui Group urgently needs a good opportunity to perfectly market itself."
Watanabe Taketa remained silent, but the slight trembling of his eyelashes indicated that he was listening.
Good, as long as they didn't turn a deaf ear.
Wang Xiao pointed to the ruins outside, "And our refinery, the joint venture between Mitsui and Wuzhou, is the best stage to showcase Mitsui's technology."
Taketa Watanabe instinctively looked outside in the direction she was pointing.
It was still a ruin, with messy rubble and all sorts of garbage everywhere, which were whipped into a chaotic dance by the steep, cold wind.
Occasionally, a blade of grass sprouts, but its thin green color offers little hope.
As a citizen of an island nation prone to earthquakes, Watanabe Taketa was truly weary of the desolation and desolation that followed earthquakes.
Wang Xiao, however, seemed completely oblivious to how desolate this land was, and continued to emphasize with great enthusiasm: "If the JX-900 Mark III, as the third-generation hydrocracking technology, can be successfully implemented in Sakhalin, it will become a technology demonstration window for Mitsui in Russia, attracting a large number of customers from CIS countries."
She tapped her fingers on the table, reminding her negotiating partner, "Let's not talk about distant countries, just look at Russia. As an energy-exporting country, the Russian Federation government urgently needs to rebuild its energy infrastructure. Mitsui can take this opportunity to promote its supporting equipment, such as electric fracturing skids."
A slight smile played on her lips. "After all, only equipment that can withstand the extreme weather in Sakhalin can truly stand the test. This isn't a fast-moving consumer good; a thousand TV commercials can't compare to a living, breathing signboard like an oil refinery."
The spring breeze on Sakhalin Island felt like it was wrapped in ice, and it really hurt when it brushed against your face. It even felt like your lips were being cut by a knife, which made Watanabe Taketa unconsciously purse his lips.
He had to admit that the words of the female boss of Wuzhou Group had stirred his heart slightly.
Every industrialized nation is extremely dependent on energy.
If Mitsui can seize this opportunity to gain control of the industry chain by using localized technological costs to achieve a breakthrough, it could gain dominance in East Asian oil and gas supply.
Without a doubt, the Mitsui Group, for which he has worked so hard, can take off again.
This is undoubtedly a shot in the arm for groups that have suffered heavy losses due to the Japanese financial crisis.
Moreover, if the refinery were actually built, would it only be a showcase to the CIS countries? No, it would be the whole world.
This is a silent contest between Japanese technology and Western technology. If Japan wins, it will bring more opportunities to Mitsui.
The technology demonstration under extreme weather conditions shows that Mitsui also has the capability to develop energy in the Arctic Circle.
The only cost is releasing the technology two years earlier.
Wang Xiao, seemingly oblivious to his interest, continued to press his advantage: "I personally greatly admire the 'soft-bodied management philosophy' proposed by your company's former president, Mr. Shigeji Ueshima. The idea that trading companies must adapt to the environment is truly brilliant. Don't you agree, Watanabe-kun?"
Watanabe Taketa reached out and grabbed his water glass, smiling enigmatically. "Miss Wang, you are truly knowledgeable."
She could readily quote the management theories of the former president of Mitsui Property, which shows how much preparation she had done for this negotiation.
Wang Xiao returned the smile: "The theories of Japanese management gurus influence the whole world, and I have benefited greatly from them."
Then she changed the subject, looking at the Japanese trading company executive across the table with envy, "Watanabe-kun, I really envy you. You will soon have such extensive practical experience in supply chain integration."
She counted on her fingers, "This project requires coordination from multiple parties, including the Russian federal government, insurance companies, and international oil services. As the leader of the reconstruction, you will gain experience in cross-border resource integration."
Her smile deepened. "Perhaps the next time we meet, Watanabe-kun, you'll already be working in the Mitsui Group's global affairs department."
This level of flattery is simply clumsy and the lowest form of bootlicking.
But it precisely scratched Watanabe Taketa's itchy spot.
As a commoner with no family background, if he wants to rise to the next level in a large conglomerate like Mitsui Group, he must demonstrate exceptional leadership skills.
Leadership skills are never something that executors can possess. They must transform into strategic planners to have a chance to rise to the core senior management.
Watanabe Taketa strategically took a sip of water, nodded slightly, and expressed his attitude: "I need to consult with my superiors."
Technology transfer is a sensitive and important issue, and even if he were the head of the East Asian Affairs Department, he would not be qualified to make such a decision.
This realization cast a shadow over his mind; he was not a decision-maker who could make the final decision, but merely an executor who obeyed his superiors.
Wang Xiao nodded in agreement and said politely, "Then please do it as soon as possible."
She pointed to the surrounding ruins, "You see, the earthquake destroyed everything, and it desperately needs to be rebuilt."
The sky was like a giant shroud, gray and gloomy, enveloping the broken and desolate world.
The traces of the Soviet Union were completely wiped out in the worst earthquake of the century that the island experienced.
She sighed and turned to her assistant, asking, "Mr. Douglas..."
“Miss Wang!” Watanabe Taketa abruptly interrupted her, his face full of suppressed anger. “You don’t need to remind me that there’s also the American Oil Company as an alternative.”
When the two sides were negotiating a joint venture to build a factory last year, she kept mentioning American oil companies.
Wang Xiao looked surprised and shook his head repeatedly: "No, no, no, Watanabe-kun, you misunderstand. Mr. Douglas, as the representative of Party B, is working on the Sakhalin 1 oil and gas field project. He was injured in the earthquake. As his boss, it is only right and proper for me to be concerned about his health."
Although Douglas's private life is far from respectable and can be described as chaotic, his professional ethics and abilities are quite good.
It was precisely because of his vigilance and decisive action that the offshore platform escaped this catastrophe.
Wang Xiao was genuinely planning to send him a large red envelope.
Watanabe Taketa didn't believe in that, and simply said expressionlessly, "I hope so."
He took a step and left.
He needed to contact headquarters, but more importantly, he needed to sort out his thoughts on his own.
Unfortunately, less than fifteen minutes later, he was forced to sit at the same table with Wang Xiao again.
The earthquake disrupted transportation and further strained Sakhalin Oblast's already precarious medical resources.
A large number of wounded people need treatment, but the blood bank is already running low.
The loudspeakers at the temporary medical station kept broadcasting appeals for uninjured people and those with minor injuries to donate blood.
Wang Xiao didn't refuse. He rolled up his sleeves to expose his arms and generously declared, "300ml, I can donate 300ml of blood."
As a result, the older nurse opposite her looked her up and down and immediately decided to give her more: "Madam, you look rosy-cheeked and in good health. You should be able to donate 400ml."
Wang Xiao shook his head without hesitation: "No, 300ml is my limit."
She barely rested last night, and now she's willing to donate 300ml of blood. It's a matter of life and death, and she can't just stand by and do nothing.
Any more and her body won't be able to handle it.
The elderly nurse frowned as she used an alcohol swab to disinfect her arm.
Lyuba watched intently from the side, ready to intervene if her boss were to bleed even a drop more.
Watanabe Taketa listened to the whole thing from the side and glanced at Wang Xiao with surprise.
After both of them had their blood drawn, they received a piece of chocolate with a traditional Russian nesting doll pattern and a bag of dry biscuits. While resting in the tent, Watanabe Taketa spoke up: "Miss Wang, you actually refused to donate 400ml of blood."
Russian chocolate was far too sweet for Wang Xiao; the biscuits, however, were barely edible.
She bit into a cookie, bewildered, and asked, "Why can't I refuse?"
Taketa Watanabe laughed: "I thought you were Pavel Korchagin."
Wang Xiao took the thermos cup handed to her by the bodyguard, took a sip of red date and longan tea, and said seriously, "Paul Korchagin was also a human being, a normal human being."
Taketa Watanabe became increasingly curious: "What if someone couldn't be saved because they didn't receive that 100ml of blood transfusion?"
"Life and death are predestined." Wang Xiao remained completely unmoved, took another sip of hot tea, and finally felt a little warmer.
Holding the cup in her hands, she looked towards the medical tent. "Countless people need 100ml of blood to save their lives. Whether they can get it depends on their fate."
300ml of blood is the greatest contribution she can make here.
A strong wind pushed the tent flap open, revealing a small gap.
At the blood donation table outside, nurses who had already drawn blood from all the donors rolled up their sleeves and began drawing blood from each other.
Wang Xiao walked to the door, lifted the curtain, and looked outside.
The old nurse who had just encouraged her to donate more blood showed her thin arm and had 400ml of blood drawn.
Then the elderly nurse, whose temples were already gray, didn't even take a break. She simply drank a couple of sips of water, ate a biscuit, and then got back to work.
When Watanabe Taketa came out and saw this, he couldn't help but exclaim, "He is truly a great white-clad warrior."
Then, as if joking, he said, "Miss Wang, do you want to donate some more blood?"
Wang Xiao shook her head without hesitation, retreated to the tent, and continued drinking her jujube tea.
Taketa Watanabe followed her back to the table, watching her and silently assessing the situation in his mind.
Suddenly, he spoke up: "Miss Wang, I hope that our brand-new oil refinery on Sakhalin Island can be built and put into production as soon as possible."
He finally made up his mind to do his best to push this matter forward.
Because he saw a rational businessman who wouldn't harm his own interests and had a bottom line.
As a business partner, such ruthlessness is perfectly appropriate.
Wang Xiao's smile, however, looked warm and radiant. She reached out her hand to Watanabe Taketa: "I believe we will see that day soon."
A series of hurried footsteps sounded outside the tent, followed by the sound of Xiao Gao and Xiao Zhao stopping people: "Sir, what can I do for you?"
"Who is it?" Wang Xiao let go of his hand, picked up the cup, and walked to the tent entrance. "What's the matter?"
Because of the bodyguards' obstruction, people outside couldn't get in, so they could only shout at the top of their lungs: "Miss Wang, we are from the Petroleum Regulatory Commission, and we need your cooperation."
The curtain was lifted from the inside, revealing half of Wang Xiao's face. Standing at the tent entrance, he looked at the team of two men and two women standing outside and asked疑惑地问道, "Petroleum Regulatory Commission? May I ask what business you have with us?"
The man at the front glanced at her, then hastily pulled a piece of paper from his bag and shoved it into Wang Xiao's hand, announcing as if issuing a notice: "Oh, so you're the person in charge of the Sakhalin No. 1 oil and gas field? We are here on behalf of the Petroleum Management Committee to inform you that, starting today, oil and gas from the No. 1 field are no longer permitted to be exported in order to ensure domestic demand in Russia."
The wind was so loud that Wang Xiao thought there was something wrong with his ears.
Is the export of oil and gas prohibited, and the supply intended for domestic use in Russia to be made?
No, bro, who are you? You just spout off like that. Who do you think you are?
Taketa Watanabe was also dumbfounded, wondering if these Russian words actually had other meanings.
Are you kidding me? An oil and gas field with a signed supply contract is just going to stop exporting?
What kind of organization is the Petroleum Regulatory Commission, and where does it get the right to interfere in other people's industries?
Wang Xiao had already finished reading the so-called notice in her hand; the bright red seal did not move her.
She shook her head without hesitation: "Ladies and gentlemen, I'm sorry, Wuzhou Petroleum cannot breach the contract, and we are unable to comply."
If any random person could decide the sales channels for the Sakhalin-1 project, then Wuzhou Petroleum would be in chaos long ago.
However, the people from the Petroleum Regulatory Commission acted as if they hadn't heard anything and completely ignored it: "We have already delivered the notice. Please make preparations at Oil and Gas Field No. 1. We will keep you informed of how to coordinate the operation."
Without giving Wang Xiao a chance to continue speaking, the group left.
Xiao Gao wanted to catch up with them and find out what was going on.
Where did this lunatic come from? It's utterly inexplicable.
However, just then, an injured person was being transported over on a stretcher, blocking Xiao Gao's way.
Everyone could only watch helplessly as they got into a van and drove away.
Wang Xiao and Watanabe Taketa were left looking at each other, puzzled: "What kind of organization is the Petroleum Regulatory Commission?"
After the collapse of the Soviet Union, a large number of Russian institutions changed their names; some disappeared, and some new ones emerged.
Like most countries in the world with chaotic power structures, Russia's current governing bodies are often in a state of passing the buck, each responsible for a specific task.
Simply put, if something happens, everyone says it's not their responsibility, but if you need to pay money, all organizations will lend a hand.
Taketa Watanabe shook his head: "I don't know, I've never heard of it."
He wondered, "Could it be a scam, a prank, taking advantage of the chaos and poor communication caused by the earthquake to try and extort money from me?"
It's not impossible.
Mafia also exists on Sakhalin Island. After the earthquake, they got a car and came here to swindle people in a serious manner, and they might actually succeed.
After all, impersonating government officials or managers to extort money from businessmen is one of their specialties.
However, Wang Xiao couldn't put his mind at ease; he felt that something was amiss.
When Ivanov returned that evening, he scoffed at the so-called notice.
He worked as a porter all day, and now his whole body feels like it's going to fall apart.
But there was no other way; we were short-handed and needed people to do the work everywhere.
However, due to Sakhalin Island's special military status, the Russian government firmly stated that it did not need international aid.
He waved the notice in his hand, frowning in disgust: "Can't they do something useful with this time? There are so many places that need people to work."
Wang Xiao's gaze followed the notification slip he was waving up and down in his hand. The bright red stamp on it jolted her, and she suddenly jolted, asking, "After the destruction of the Nevtegorsk oil field, where will the domestic supply gap of 40,000 barrels per day be filled?"
Ivanov was taken aback by the question, and subconsciously scratched his head, unsure: "It will probably draw on the remaining production capacity of oil fields in West Siberia, such as the Samotlor oil field."
Siberian oil fields account for more than 70% of Russia's production, and there should still be the capacity for short-term flexible production increases.
Wang Xiao pressed further, "Besides that?"
Ivanov looked at the top of the tent and thought for a moment: "They might also use the national oil reserves. I remember there are 30 million barrels of oil reserves."
When he looked down, he saw that Wang Xiao had closed her eyes and couldn't help but worry, "Are you exhausted? God, you shouldn't have donated blood."
Wang Xiao did feel dizzy, but it wasn't because of donating blood.
Instead, she suddenly realized a terrifying possibility: that the so-called Petroleum Commission was not a figment of imagination, and the notice it delivered was not a prank, but a real executive order!
"The extraction equipment in the Siberian oil and gas fields is old and in disrepair, and has not been upgraded for a long time."
Wang Xiao rubbed his forehead and analyzed, "Therefore, it is highly questionable how much elasticity its production capacity can actually achieve."
Given the greed of oilfield managers and sellers, if the oil and gas fields could produce more, they would definitely sell them off without missing a single penny.
Everyone knows that Russia's current means of truly controlling its economic lifeline is controlling the right to export oil.
“And this energy reserve.” Wang Xiao also felt it was likely unreliable. “30 million barrels won’t last long, and Chechnya hasn’t truly restored peace. The federal government must maintain the level of its reserves.”
After eliminating these possibilities, there truly is no better alternative than the Sakhalin-1 oil and gas field.
Its geographical advantages make it the perfect candidate to supply energy for industry and daily life in the Far East.
Otherwise, importing oil and gas from other CIS countries to supply domestic demand would be far too costly.
Ivanov also came to his senses, and broke out in a cold sweat.
The two stared at each other blankly, and without saying a word, they quickly ran to find the head of the island's disaster relief committee—the First Deputy Prime Minister of the Russian Federation—in order to get a definite answer.
Unfortunately, although the Deputy Prime Minister received them, he shook his head and said he did not know.
He is in charge of disaster relief work, and things like alternative oil supply plans fall under the category of post-disaster reconstruction, so he hasn't received any notification yet.
However, he still tried to comfort the anxious oil company owner: "There's nothing wrong with switching to domestic sales. Russian oil and gas provide a guarantee for Russian industry and people's lives, isn't that the most appropriate thing to do? Even if the price is a little lower, it's only right."
Wang Xiao roared inwardly, "Suitable my foot!"
Is it a matter of having less money? No, it's a matter of not getting the sales revenue at all.
Go to the Tyumen oil field and ask the workers who produce oil every day how long they haven't received their wages.
Where did all that sales revenue go? Only God knows!
Ivanov shook his head, looking troubled: "I'm afraid that won't work. We've already signed the contract and received a deposit. If we breach the contract and don't supply oil to the buyer, the penalty will be enough to bankrupt us."
Moreover, their cooperation with the Mitsui Group was established precisely because of the supply of oil and gas from Mitsui.
The Deputy Prime Minister smiled politely, offered no comment, and simply said, "God bless."
As for whom God will bless? Only God knows.
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Goodnight. [melted emoji]
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