Selling oil across Libya

Chapter 75 Plastic Flower Brothers

In 2011, East Asia's total automobile sales exceeded 1850 million vehicles, breaking the global record once again and retaining its position as the world's number one for the third consecutive year.

Although the East Asian market is dominated by low-end cars, it has a large population base and a considerable number of middle-class and wealthy people.

If Hummer lowers its profile and enters the mid-to-high-end car market in East Asia, it could certainly grab a share of the market, if not create a sales miracle.

Qin Rui did not insist on leaving every step, from design to production, in Libya.

If we want to enter the East Asian market, we must be down-to-earth.

Libya's own capabilities are too weak. If you link Humvee to Libya, it instantly becomes a roadside object.

Qin Rui plans to invite an Italian design firm to design a new Hummer model while preserving the Hummer lineage to the greatest extent possible, injecting fresh blood into the vehicle.

In recent years, East Asia has seen a significant increase in manufacturing strength based on its cost advantages, and its supply chain advantages have become increasingly apparent.

Therefore, the production process must be located in East Asia.

To ensure the plan would proceed smoothly, Qin Rui exchanged a professional manager, Christopher, from the system and appointed him as the general manager of the newly established Cyrenaica Investment Company.

At the same time, the Tripoli Investment Company, which was previously managed by Qin Liang, was also handed over to Christopher for management.

The Tripoli Investment Company's investments are primarily focused on technology and finance.

Cyrenaica Investment Company focuses on real industries, and the businesses of the two companies not only do not conflict, but can also complement each other to a large extent.

After taking over the job, Jeristov quickly submitted a development plan to Qin Rui.

Strictly speaking, Hummer is not a high-quality investment project.

GM offered $1.5 million for the Hummer brand, which is about the same price Tengchong paid for Hummer.

In Christopher's view, Hummer was not worth $1.5 million at all. Instead of spending so much money to acquire Hummer, it would be better to create a new brand.

Christopher also suggested shifting the focus of investment from manufacturing to resources.

For example, the burgeoning lithium mining industry.

Another example is the Simandou mining rights, which were widely discussed as early as the last century but have yet to be mined.

With the world's largest reserves of 44 billion tons and a high grade of 67%, the Simandou iron ore mine is known as "the jewel in Guinea's crown".

In 1997, Rio Tinto acquired exploration rights for four blocks in Simandou, marking the start of the project.

In 2003, Rio Tinto acquired mining rights to Blocks 1 and 2 in the north, but the project made little substantive progress in the following five years.

In 2008, the Guinean government, having reached its limit of tolerance, forcibly reclaimed the mining rights for Blocks 1 and 2 and sold them to BSG for $1.5 million.

After BSG took over, although it did not carry out any substantial development, it sold 51% of the shares to Vale for $25 billion.

Not long ago, BSG's development rights were revoked by the Guinean government due to a bribery scandal.

What was once a perfectly good mine has been turned into a financial product by this international mining giant.

Rio Tinto and Vale are both international mining giants that control the vast majority of the world's iron ore production and sales.

Therefore, Rio Tinto and Vale will certainly not develop the Simandou iron ore mine, as this would negatively impact their own interests.

Christopher wanted to be involved in the bidding for the Simandou iron ore mine.

"Can we handle the problems that Rio Tinto and Vale couldn't solve?"

Although Qin Rui knew about the Simandou iron mine, he did not know the specific details of the Simandou iron mine.

"That depends on the level of support you can give me."

Christopher was full of confidence.

What kind of support do you want?

Qin Rui needs to see if it violates principles; uncivilized behavior is definitely unacceptable.

"I need military support."

Christopher pointed out the crux of the problem.

The Simandou iron ore mine is located in a remote area, plagued by venomous snakes, malaria, and frequent geological disasters. Extracting the iron ore would require not only building over 600 kilometers of railway but also constructing deep-water wharves.

While iron ore mining rights are not valuable, infrastructure investment is expected to reach tens of billions of dollars.

As oil production in the Sirte Basin gradually recovers, Libya's daily oil output has risen to nearly 150 million barrels, just a step away from its peak of 165 million barrels.

Benefiting from increased oil production, Libya's National Oil Corporation's profits have also increased to around $1 million per day.

For Libya at this point, funding is not an issue.

The key question is whether Qin Rui is willing to use force to protect the interests of the Cyrenaica Investment Company when Cyrenaica's legitimate interests are infringed upon.

"As long as it's a legitimate right, I will give you my full support."

Qin Rui did not hesitate.

After the Battle of Benghazi, peace was restored in Libya, and Qin Rui's [Evolution Value] balance soared to 64, but he fell into anxiety.

After exchanging for the staff needed to maintain the country's operation, the daily consumption of [Evolution Points] has now increased to 2002 points.

64 seems like a lot, but it won't even last a year.

Whether Cyrenaica Investment Company can open up new profit growth points is not important.

The key is to find new ways to increase [evolution value].

Guinea had just experienced a coup in 08, and the current president, Alpha Condé, came to power through the general election in 10. Although the political situation in Guinea has generally returned to stability, the country remains turbulent and the contradictions are sharp.

Qin Rui has a responsibility and an obligation to ensure that the people of Guinea can enjoy the same peaceful and stable life as the people of Libya.

"Wait for my good news!"

With Qin Rui's promise, Christopher's confidence soared.

As Libyan oil production gradually increases, troubles follow.

During the time of Colonel Libya, as an OPEC member country, Libya played a vital role in stabilizing world oil prices.

After the outbreak of the Libyan civil war, daily oil production once fell below 50 barrels, pushing oil prices up to over $100 per barrel. While Libya's revenue plummeted, other OPEC members made a fortune.

After Libya's daily oil production reached 150 million barrels, OPEC proactively sent a letter to the Libyan government requesting that it limit oil production and cooperate with OPEC to stabilize oil prices at around $110 per barrel.

Oil is Libya's mainstay industry, and almost all of Libya's income comes from oil. Qin Rui would certainly be willing to stabilize oil prices.

However, Qin Rui had something to say about limiting Libyan oil production in order to stabilize oil prices.

During the Libyan civil war, Libya's oil quota in OPEC was divided up among other member countries, and all member countries except Libya were satisfied.

If Libya cooperates with OPEC to stabilize oil prices, how do you account for the losses Libya has suffered during this period?

Since we are brotherly nations, we should share both good times and bad times; we can't be just superficial brothers.