Rebirth in 1985

Chapter 497 The Oil Plan Begins

Royal Dutch Shell wanted to cooperate with Phoenix Group, and Lu Shaohua certainly would not object. Not only would he not object, he would welcome it. It was just that the proposal they put forward was for all-round cooperation, which Lu Shaohua could not accept. But this did not mean that the two companies could not cooperate. They could still cooperate in other areas, such as agency.

Yes, it is an agent. It is not that Royal Dutch Shell is an agent for Phoenix Group, but that Phoenix Group is an agent for Royal Dutch Shell.

What to agent?

Royal Dutch Shell operates in the oil industry, so the things that they represent are of course related to oil. However, Lu Shaohua does not want to be an agent. He only wants to be an agent for three things: natural gas, gasoline, and diesel.

Natural gas, gasoline and diesel are all extracted from crude oil and are considered part of petroleum. Lu Shaohua wants to be the agent for these three petroleum products in order to resolve Phoenix Petroleum's current embarrassing situation and get rid of the name of a shell company.

Of course, it doesn't mean that if Phoenix Group is willing to act as an agent, Royal Dutch Shell will definitely be willing. It still needs to be negotiated and discussed over there before it can be finalized. But Lu Shaohua is not worried that the other party will refuse.

The reason is very simple. Royal Dutch Shell has not yet entered Asia. Asia is also a big market. They dream of getting involved in the Asian market, but they are unfamiliar with the place. How can it be so easy to get involved?

There is another more important reason. Royal Dutch Shell is now ranked 49th in the world, second to last. This is a result they have achieved after years of hard work, and they cherish this achievement very much.

However, being ranked 49th is an embarrassing and dangerous ranking. They might be squeezed out of the top 50 next year. They must work hard to keep this ranking this year. If they let Phoenix Group act as their agent in Asia, their business will definitely soar and the company will develop. With development, they can keep their ranking.

Maintaining the ranking is a conservative estimate. Given Phoenix Group's current size and influence in the world and Asia, they will definitely give Royal Dutch Shell an excellent result. The final result may even lead to an increase, and it is not certain that they will move up several places.

There is another very important point. Phoenix Group has a very good reputation in the international market, ranking 37th. By cooperating with such a company, Royal Dutch Shell's reputation will also rise and it will better establish its own brand.

What's more important is that Lu Shaohua also gave them certain benefits. The benefit is that all the lubricants used by Phoenix Automobile are produced by Royal Dutch Shell. This is a considerable business. At the same time, it is also a disguised promotion for the lubricants of Royal Dutch Shell. It is a best of both worlds solution. How can Royal Dutch Shell refuse it?

Lu Shaohua couldn't think of any reason why the other party would refuse, but they were a joint-stock company after all, and it was not up to the president, Philippe Watts, to make the decision. He had to return to the company's headquarters to hold a shareholders' meeting and vote on it before he could agree to Lu Shaohua.

Lu Shaohua also knew Philippe Vaz's dilemma and did not force him. He gave him enough time to go back to the company to hold a shareholders' meeting and then come back to discuss cooperation.

Philippe Vaz only stayed in Hong Kong for two days. On the third day, he boarded a flight to the UK and hurried back to convene a shareholders' meeting to discuss the plan proposed by Lu Shaohua.

As for Lu Shaohua, he also hopes to cooperate with Royal Dutch Shell, because once the two companies cooperate, it means that Phoenix Group will officially enter the oil field, and more importantly, Phoenix Group can avoid many detours.

The strength of Phoenix Group is strong, but that refers to the overall strength, not all aspects. For example, in the field of oil, Phoenix Group has just entered and is considered a newcomer. If there is no big tree like Phoenix Group, the road ahead will be very difficult.

Although the cooperation with Royal Dutch Shell cannot make Phoenix Petroleum soar to the sky, it is almost the same. It can bypass many detours and get directly to the center and get on the right track. More importantly, Phoenix Petroleum can get rid of the situation of only investment without return and start to make profits directly.

Both parties will benefit. Royal Dutch Shell can smoothly enter the Asian market, earn commissions on performance, and maintain or improve its world ranking. Phoenix Group can use the cooperation to get involved in the oil sector, get on the right track, and get rid of the situation of only investment but no return. It can be said that both sides benefit and it is a win-win situation.

Of course, it is too early to say this now. After all, the cooperation plan has not been finalized yet. We still need to wait for news from Philippe Vaz to confirm it.

However, Lu Shaohua seemed very confident in the cooperation. He recruited relevant talents with great fanfare and began to build the team of Phoenix Petroleum, making it appear that if Royal Dutch Shell did not cooperate with Phoenix Group, Phoenix Group would do it on its own.

This is indeed the case, and this is also Lu Shaohua's plan. If Royal Dutch Shell does not cooperate with Phoenix Group, Lu Shaohua will let the Tiger Roar Base in Africa refine some crude oil and operate it himself.

In fact, Lu Shaohua had planned the same thing when Phoenix Petroleum was first established, but when Royal Dutch Shell intervened, Lu Shaohua saw a glimmer of hope that he could quickly lay the foundation for Phoenix Petroleum, so he personally met with Philippe Watts to discuss cooperation with him.

Who doesn’t want to take fewer detours, who doesn’t want to make profits without investing from the very beginning?

Lu Shaohua just wanted Phoenix Petroleum to avoid some detours and win without investing from the beginning. This was the basis for Lu Shaohua's cooperation with Royal Dutch Shell. As for the future, Lu Shaohua had not thought about it, but one thing was certain, it was only a matter of time before Phoenix Petroleum operated on its own. After all, Lu Shaohua's goal was much bigger than others imagined.

Controlling international oil is Lu Shaohua's ultimate goal. Lu Shaohua is also constantly working towards this goal. The establishment of Phoenix Group is just the beginning...

There is a saying that goes, "Hearing is not as good as seeing." Now, there is still a long way to go. Lu Shaohua cannot guarantee that Royal Dutch Shell will definitely cooperate with Phoenix Petroleum. They have to wait for their shareholders to vote to determine the result. Therefore, it seems a little too early to be happy now.

Maybe, Lu Shaohua was more or less worried in his heart that the cooperation would fail, but was it possible?

You know, Lu Shaohua gave the order for the lubricant needed by Phoenix Automobile to Royal Dutch Shell. This is a big order! Originally, Lu Shaohui could be completely self-sufficient and let Africa refine it for supply.

However, in order to cooperate with Royal Dutch Shell, Lu Shaohua gave up this idea and changed to Royal Dutch Shell to provide it. Of course, Lu Shaohua would do it if he knew how to save money, but the Tiger Roar Base in Africa also needed lubricants, and there was not much crude oil to be refined, so the amount of lubricants was limited, which made Lu Shaohua give up this approach.

Being thrifty is something that every businessman must possess. Lu Shaohua is now considered a qualified businessman, so of course he would consider this matter. The lubricating oil item is the result of Lu Shaohua's careful calculations.

The benefits have been given and the cooperation plan has been proposed. Lu Shaohua has done his best. The final result depends on Royal Dutch Shell. Even if Lu Shaohua is worried, he can only keep it to himself and still do what he should do.

While Phoenix Petroleum was busy building its own team, a completely different scene was seen in the meeting room of Royal Dutch Shell in the UK. Shareholders of all sizes were present, enthusiastically discussing cooperation with Phoenix Group.

People decide their own thoughts. Cooperation with Phoenix Group has more advantages than disadvantages. However, some people oppose cooperation with Phoenix Group. They believe that Royal Dutch Shell does not need to rely on Phoenix Group to enter the Asian market. It has the strength to enter on its own.

Does Royal Dutch Shell have the strength? The answer is obvious, they do, but those who oppose it overlook one point, that is, are they stronger than Phoenix Group?

The answer is also obvious. One ranks 37th and the other ranks 49th. This is the gap. Phoenix Group is stronger than Royal Dutch Shell. So if Phoenix Group enters the oil field itself, can Royal Dutch Shell still enter Asia?

No, absolutely not. With Phoenix Group's influence in Asia, it would be extremely difficult for them to enter. In time, they would clash with Phoenix Group and become rivals in the same industry. By that time, they would no longer be partners, but enemies.

Philippe Vaz is the CEO of Royal Dutch Shell. Although he only holds a small share, he is the initiator of this cooperation plan after all, and he has the right to sit in this conference room.

When some people were opposed to the cooperation with Phoenix Group, Philippe Vaz spoke up and analyzed the whole thing in detail, stating the pros and cons clearly. This immediately calmed down the opposing shareholders and they all expressed their support for the cooperation.

In this way, the plan was passed, and Philippe Vaz flew to Hong Kong on the second day of the shareholders' meeting to begin negotiating cooperation plans with Phoenix Group.

This time was different from the last time. Lu Shaohua did not show up in person. He left all matters to Qin Sichen and asked Qin Sichen to negotiate with Philippe Watts. He only wanted to know the result.

Qin Sichen did not disappoint Lu Shaohua. After three days of negotiations, the two sides finally finalized all the terms in the cooperation plan and the cooperation was finally achieved.

The cooperation between the two parties has set off a wave of enthusiasm both internationally and in Asia. It is considered a major news and has been reported by many media outlets, pushing Phoenix Group and Royal Dutch Shell, two of the world's top 50 companies, to a higher level.

Lu Shaohua's current identity has been known to the outside world. As the chairman of the board, he also needs to take a step forward in this kind of matter, accept media interviews, express his opinions, and make some sensational remarks to establish his influence.

Of course, these are all superficial. Lu Shaohua doesn't care. What he cares about is that his plan has finally begun.

The oil project has really taken off...