The Magician’s Memorial - Chapter 390



Only Krnovel

390. Timing (5)

The short-selling forces really attacked constantly.

And in January 2015, oil prices were still falling, so Hess’ stock price fell sharply.

It wasn’t just Hess.

Not only the United States but also European oil companies are suffering from a funding crunch.

In some cases, businesses that did not make money were sold at a low price or disposed of.

Thanks to that, an unexpected opportunity came to us.

[boss! Shell says it will hand over development rights to Guyana’s Stavrk offshore area.]

“How much did you say you’d pay? No, the price doesn’t matter, so we have to bring it back!”

[Still, you should listen to the price. I will hand over the entire development rights for just one dollar. Instead, there is a condition that exploration and development must continue.]

1 dollar?

It was a development right that could earn tens of trillions of won if an oil field was discovered.

It was also an opportunity that came to us because we hold a large number of shares in the Guyana fund.

“Please bring it with you. If it doesn’t work out, you have to put your foot on the line, even if it means splitting 50% of the shares with ExxonMobil.”

[I will proceed with negotiations. I don’t think ExxonMobil will be opposed to it if it is conditional on sharing the shares. Since times are so difficult, there is no way we can avoid ways to reduce risks.]

“Say you will start investing the amount needed for oil exploration today.”

[Is that still okay?]

His voice was droopy, uncharacteristic of David.

Perhaps his voice seemed to have sagged due to the short-selling attack.

“If it’s a short selling attack, don’t worry about it.”

[However, when news spreads that we are spending money to explore Cell’s oil fields, Hess’s stock price falls further.]

“There is a Korean proverb that says, ‘Why can’t I make soybean paste because I’m afraid of maggots?’ There’s no need to hesitate to invest because you’re afraid of short-selling forces like maggots.”

[okay! Then, I will step forward and conduct preliminary negotiations. Later, I will send President Han or someone from Taewo to do the signing.]

“I will go directly.”

A business that can generate profits worth tens of trillions of won for just one dollar.

Since I couldn’t miss these items right in front of my eyes, I made a hasty decision to go to the United States.

* * *

Shell, a global oil company famous for its shell-shaped logo.

It was a large oil company created through the merger of the Royal Dutch Petroleum Company and a British oil company, so its headquarters were in the Netherlands.

However, the largest subsidiary was in the United States.

U.S. subsidiary Shell Oil Company.

It was a company that not only engaged in the oil business but also produced automobile lubricants, and Taewoo Motors also had a lubricant supply contract with Shell Oil Company.

That’s why I visited Shell to negotiate directly.

Vice Chairman Layman, who is in charge of oil exploration, also attended from ExxonMobil, our competitor.

“As I told you, Shell is planning to give up oil exploration in Guyana. We have already been exploring for 10 years, but we have not found a proper oil field. This is a project where we do not know how much more money and personnel we will need to invest in the future.”

“ExxonMobil will follow Shell’s lead and continue exploration.”

“We are ready to continue exploration in the oil consortium. We promise to conduct large-scale oil exploration through Hess, which has been conducting oil field exploration for nearly 80 years.”

I gave my prepared message without anyone else being the first.

They said they would hand over the development rights for only $1, but it was advantageous to receive it unconditionally.

The shell was well aware of this, so it added a few conditions.

“We have to honor our commitments to Guyana, so we really want to hand over development rights to those who have the capacity to proceed with exploration to the best of our ability.”

“As you know, ExxonMobil is still leading oil exploration in Guyana.”

“Hess, which is part of the oil consortium, also owns a 30% stake in exploration of Guyana’s oil fields.”

“But Hess is under attack from short sellers. Would it be okay to acquire new oil field development rights in this situation?”

I knew this question would come up.

Anyone could see that the current Hess was in tatters.

The stock price was falling more than 7% a day due to short selling, and the short selling amount alone was exceeding billions of dollars.

Currently, attacks on Hess were becoming a trend on Wall Street.

There was even talk that Hess could go bankrupt.

“If Hess is on the verge of bankruptcy, we can write a contract that states that we will save Hess by selling the entire Taewoo Group and proceed with oil exploration in Guyana.”

“Are you saying that you will save Hess even if it means selling all profitable businesses such as semiconductors, automobiles, electronics, and construction?”

“First of all, it is very unlikely that Hess will go bankrupt due to short selling. And it is possible to avoid the bankruptcy crisis by selling just one affiliate rather than the entire Taewu Group. Nevertheless, the decision to sell the entire Taewu Group shows that the company has a strong will. “I just wanted to let you know.”

Shell executives nodded.

They knew the value of Taewu Group well, and they seemed to think that they could trust and entrust it to them if they pledged the entire Taewu Group as collateral.

“Next, I will ask ExxonMobil. Although not as much as Hess, ExxonMobil’s stock price has also fallen a lot. But is it possible to explore and develop new oil fields in Guyana?”

“It is entirely possible. We are willing to make money and continue exploration and development, even if it means using ExxonMobil as collateral.”

Is this a sauna?

It was so hot that the air in the office became hot.

I wasn’t the only one feeling the hot air; Shell’s management also read our true feelings.

“How about doing it this way? If Taew Group and ExxonMobil each share 50% of the shares, wouldn’t the risk be reduced by half?”

“If ExxonMobil and Hess, which have excellent oil exploration capabilities, jointly conduct exploration, the speed of oil discovery could be accelerated.”

I nodded and said, pretending it was my first time hearing this.

However, this was a plan I planned, and it was also something I proposed to the executives of ExxonMobil and Shell through David.

“If only ExxonMobil accepts it, I hope the two companies will jointly develop it.”

“I will do so. We will discuss the details separately after the share transfer.”

“Good. Then, I will draw up the transfer agreement.”

It was a contract that went smoothly.

If it was a contract involving a large sum of money, of course there would be a lot to consider.

Since it was a contract for only $1, there was nothing to discuss or see.

“Please sign here to conclude the contract.”

Ssuk ssuk!

I signed the contract right away.

And I and the Vice President of ExxonMobil simultaneously took out coins from our pockets.

“I will pay the bill.”

“Hehe, it’s really heartbreaking to think that 10 years of effort is worth just one dollar.”

Two 50 cent coins.

It was the result of Shell’s efforts to explore Guyana’s oil fields for 10 years.

Actually, the amount didn’t matter. It was just an amount for the symbolism of a perfect ending.

“We will make sure that oil exploration is successful.”

“If we succeed in oil exploration, this will be the worst deal for Shell. But I will support you. Prove that we haven’t done anything nonsense for 10 years.”

Shell executives even had tears in their eyes.

It was a tear full of meaning.

10 years of regret and even relief.

If it weren’t for the oil war, exploration would have continued for at least a few more years.

And sooner or later, we would have succeeded in discovering genetic genes.

In the end, it was a timing issue.

All timing was unfavorable for Shell and advantageous for Taewo Group and ExxonMobil.

“Then, let’s get up. You two can stay and talk more. Since we will be conducting oil exploration together in the future, there is no harm in becoming friends.”

“Then, I will shamelessly rent the place.”

“I hope to see you again with a good contract next time.”

Shell executives walked out.

The vice president of ExxonMobil and I held out our hands at the same time to shake hands.

“It is an honor to meet the famous Taew Group Chairman Kim Min-jae.”

“I am more honored. I know very well how high Vice President Layman’s reputation is in the oil industry.”

It was a very warm atmosphere.

The mood couldn’t have been bad since he owned 50% of the shares for only 50 cents.

“But it seems like the Taewo Group is very interested in Guyana’s oil fields. Didn’t you acquire a 10% stake in the Guyana Fund some time ago?”

“Isn’t it absurd that oil fields are coming from all over Venezuela, but there are no oil fields in Guyana, the country right next door?”

“Everyone thought so and started exploring oil fields in Guyana. However, ExxonMobil is the only exploration company that has remained in operation for 10 years.”

Even Shell withdrew.

Therefore, it could be said that ExxonMobil was the only company left to explore oil fields in Guyana.

“We are planning to send a large number of Hess’ oil exploration personnel to Guyana. Of course, we will make a decision in coordination with ExxonMobil.”

“If Hess helps, it will be a relief to the drought. However, simply sending a few people out won’t do it.”

Oil exploration was a kind of gambling.

In order to gamble, you needed stake.

Exploration could only begin with astronomical stakes, and for 10 years, many oil companies withdrew without making any profits after paying the stakes.

“We plan to continue investing in oil exploration until we succeed in discovering oil fields. We will prevent the unfortunate incident of not being able to explore due to lack of money.”

“Those are very reassuring words. But are you really okay with short selling?”

When the topic of short selling came up, I cleared my throat for no reason.

The Vice Chairman of ExxonMobil is worried about Taewo Group.

When the oil war began, Taewoo Securities short-sold many oil companies, including ExxonMobil.

Of course, Taewoo Securities did not take the lead.

Because the name was hidden through a fintech bank, it was not known that Taewu Group conducted short selling.

“It’s okay. No matter what the short sellers do, as long as we hold tight to our shares, there won’t be a big problem.”

“I hope that the short selling issue is resolved well. Not for the sake of the Taewo Group, but for the sake of the American oil industry.”

It certainly seems like the oil industry is having a hard time.

This is even coming out of the mouth of ExxonMobil’s vice president.

But if you think that now is the lowest point, you are mistaken.

A few years from now, a much worse basement awaits us.

Of course, oil prices were going to rise in the first half of this year.

In order to give a blow to the short sellers, ExxonMobil’s help was needed.

“Wouldn’t all our problems be solved if we just discovered oil in Guyana?”

“There is no better news than that. We need to put more effort into oil exploration to crush the short sellers!”

“Not only Hess but also Taewoo Group will spare no effort in providing all support. If necessary, we will even recruit personnel from Taewo Construction and send them over.”

These were not empty words.

Genetic discovery was that important.

It was essential not only to overcome the short-selling forces, but also to secure food for Taewoo Group in the future.