legendary trader

Chapter 674 675 Giving Up

"Jingle bell jingle bell."

The ringing of the mobile phone at the bedside woke up Chen Fan in his sleep. He rubbed his sleepy eyes and sat up. Chen Fan picked up the mobile phone and glanced at it, then he was refreshed. The call from his wife was at 10 o'clock in the morning, so early Call yourself, has something happened to you?
Then he answered the phone resolutely, and said affectionately into the microphone: "Hello, dear."

After more than half an hour, Chen Fan felt that his ears were getting hot, so he reluctantly put down the phone. At this moment, the other end of the phone hung up. Liu Ying should be going to wash and go to bed. Thinking of that graceful figure, Chen Fan My heart felt hot, but the journey was far away, almost half the world away.

Liu Ying arrived in the Pampas Republic yesterday, joined Anselin and others and followed their team to participate in two informal meetings in the afternoon and evening with representatives of the Pampas Ministry of Commerce, the Ministry of Energy and other departments .

According to Liu Ying, when she was in Europe, she had already found an investigation company to investigate the Pampas Republic and YPF Company, and initially found out the details of the other party. After arriving in Pampas, she participated in two talks, Liu Ying has already put a big cross on this so-called acquisition negotiation in her heart.

In fact, she was not optimistic about the fact that this transaction was in Europe. She had already made this judgment, but she still came and wanted to confirm some information on the spot.

After the plane landed at the Pampas International Airport and drove into Buenos, the capital of the Pampas Republic, she saw the domestic infrastructure construction of the Pampas and the street scenes further confirmed her thoughts. Here is really It's too backward, that is, it's a little better than the few North African cities I visited when I was traveling in the Mediterranean, and it's not as good as most North African cities.

In such a country, even if you win its oil and gas management rights, what is the significance? You must know that the oil and gas extracted by YPF must first ensure domestic supply, and the data obtained by Liu Ying shows that oil and gas products are sold in the Pampas. The price is controlled and not changed according to the market price, and the place is too poor to raise the price at all.

Most of the resources have to be supplied to the Pampas at low prices, and the remaining resources that are less than [-]% of the total output can be exported to supplement profits. It is also necessary to guard against the domestic turmoil in Pampas at any time. Pampas seems to be the democratically elected government and It can be said that the political situation is not stable, but it seems to have improved in the past ten years. However, as a businessman, I naturally reject such a country.

Because political changes are uncontrollable, no one can predict when and what will happen.

Although the slightly stable government of Pampas has given their state-owned company YPF a fairly high monopoly power, this right can be given to you or taken away, but it is just a matter of thought.

It turned out to be from your own country, so it is natural for you. If you sell it, even if it is bound in the contract, will it have any effect?

As long as the market is opened, the monopoly power will naturally disappear. It can be said that this in itself is a huge uncontrollable risk, and it seems that this privilege is also required to be realized in this transaction as a consideration.

The current Pampas government needs low oil prices to stabilize the local social situation, so it is almost impossible to make profits through the price increase of oil and gas resources after the completion of the transaction, so the only way is to increase investment and increase production.

But going back to what I said earlier, the exclusive mining right can be negotiated with you, but what about when it is implemented?

If there is a change in the political situation, will the new government recognize that contract?

In the political changes in Pampas decades ago, such things should not happen too much.

In short, this phone call made Chen Fan understand that Pampas has a weak economic foundation and weak national strength, and there is limited support for resource mining companies such as oil and gas, because in Pampas, agriculture, animal husbandry and light industry are the ones that really take the lead.

Pampas is such a strange country. It has been independent for a long time, and the country has gathered huge capital from all over the world. At that time, relying on the abundant natural resources and strong wealth in the country, it also achieved the international reputation of the Pampas Republic at that time. moments of brilliance.

In the eyes of the whole world, Pampas is a country with the right location and timing. It has accumulated a lot of wealth in a short period of time. Especially in a world of capital, its inherent advantages are not insignificant.

However, what makes people laugh and cry is that Pampas did not invest the wealth obtained through the export of agricultural products into the industrial system, but confidently invested it in agriculture and animal husbandry or some light industries. As for those heavy industries products, rely only on imports.

This has led to a serious imbalance in the industrial structure of Pampas. It can be seen that Pampas has positioned itself as an exporter of agricultural and animal husbandry products. Temporary comfort zone.

However, Pampas did not realize that the international demand for agricultural and animal husbandry products has not always been high, and the money has not always flowed to his family.

As the world's financial system fell into the Great Depression, the world's consumer demand for agricultural and animal husbandry products declined, and Pampas became stretched. The financial balance was seriously out of balance, and he had to rely on borrowing money to maintain his life.

Now the Pampas government plans to sell YPF in exchange for tens of billions of dollars of wealth. To put it bluntly, it is because there is no other way to borrow money. Many national debts that are about to expire cannot be repaid. You know, national debt The result of overdue is very serious. Not only will it lead to a decline in the country's credit rating, but the most important thing is that it will be more difficult to borrow money in the future.

Officials don't care about what the national credit rating is, but if they can't borrow money, they will die. There must be no tragic situation where there is no place to borrow money.

Now that the negotiations between Repsol and the government representative of the Pampas Republic are coming to an end, they just insist on the transaction price, which is why the following things happened. The Peak Petroleum Company was just used by Pampas to use It's just a tool to stimulate Repsol's nerves.

Why are you obsessed with the price, because the money for this transaction has been planned for use, if the price cannot be sold, the consequences are self-evident.

You know, 100 billion yuan of which is to repay a debt that is about to mature.

Chen Fan put down the phone and did not go to the bathroom to wash up. Instead, he stood in front of the window with a cigarette in his mouth, looking at the garden in the villa, with strange flowers and rocks, but his eyes were indeed wandering. He was not admiring the beautiful scenery, but thinking about it. As Liu Ying said, the Pampas is rich in natural resources, but unfortunately they are all owned by the Pampas government. Only the oil company is still owned by the Pampas government.

The Taca Taca Mine held by First Quantum Mining Company and the El Pachon Project held by Glenone are both located in Pampas, the top ten copper mining areas in the world. Unfortunately, they cannot get their hands on them.
(End of this chapter)