Chapter 101: A Pleasant Cooperation
Lin Haoran had roughly looked into the background of Ahmed Zaki Yamani, the current head of Saudi Aramco.
He was not only the person in charge of this gigantic company, but also the Saudi Minister of Petroleum and Mineral Resources.
Under his leadership, Saudi Aramco had transformed from a private enterprise into a state-owned company.
This was a truly influential figure.
However, Lin Haoran did not feel nervous at all. He had come here to do business, not for anything else.
Even if the deal failed, he could still find oil companies from other countries to cooperate with.
A sixty-million-dollar order could not be considered extremely large because he was not a long-term partner, but it was definitely not a small amount either.
In business, there was no such thing as one side owing the other. Everyone simply engaged in fair transactions.
That night, Lin Haoran went to bed early, spending an ordinary night in the unfamiliar country of Saudi Arabia.
The next morning, he woke up early.
The hotel was not very tall, only a dozen floors or so. However, Lin Haoran’s room happened to be on the 12th floor, and from this height, he could clearly see a massive oil field in the distance, as well as his destination—the headquarters building of Saudi Aramco.
Near the headquarters building, he could also see many oil storage tanks.
Looking at the huge area filled with storage tanks, Lin Haoran suddenly had a thought.
Could these storage tanks be rented?
After buying the crude oil, it was impossible for him to immediately take delivery. After all, even if he did, he had nowhere to store it.
Seeing these storage tanks gave Lin Haoran an immature idea.
Besides this, he still had to wait for the oil crisis to erupt. To obtain a satisfactory price, he would need to wait at least half a year.
From the end of 1978 to early March 1979, Iran stopped exporting oil, causing turbulence in oil prices and tightening global supply.
The sudden reduction in crude oil supply in the global oil market triggered a wave of panic buying, causing oil prices to rise sharply.
After signing this deal, in about half a year, crude oil prices would more than double. By 1980, they would rise to over thirty dollars, or even close to forty dollars per barrel.
However, Lin Haoran definitely could not wait that long.
Rather than spending such a long time waiting, he would rather exit the market halfway and use the funds elsewhere.
After all, making money did not only depend on profiting from an oil crisis.
He had already planned his next move.
Around June or July of the following year, he would enter the gold market.
Compared with the rise in oil prices, gold would increase by a much larger margin, and the time required would be much shorter.
As for crude oil, earning around double his investment would already be enough.
After all, to Lin Haoran, time was money.
Spending one and a half years in the crude oil market just to earn two or three times his money was not satisfying enough.
If other people heard this, they would definitely say:
"Are you sure that’s something a normal person would say?"
After all, an investment that could double in value—especially one involving several hundred million dollars—was not easy.
The larger a company became, the harder it was to obtain profits.
Take companies like Jardine Matheson, HSBC, and Wheelock for example. Maintaining annual profits of over ten percent was already considered very impressive.
A large number of companies were actually operating at a loss.
There was no way around it. Once a company became large, it had more businesses, more subsidiaries, and began expanding into different industries. Inevitably, losses would appear.
Many times, the speed of losing money could even exceed the speed of making money.
---
For breakfast, Lin Haoran ate a very local Saudi-style meal at the hotel.
Flatbread, sandwiches, dates, and camel milk.
After checking the time and seeing that it was almost time, he left the hotel with his bodyguards.
He got into a taxi waiting outside the hotel and headed toward the headquarters of Saudi Aramco.
A few minutes later, he and his two bodyguards arrived at the headquarters building of this famous oil company.
Because he had made an appointment beforehand, Lin Haoran smoothly entered an office under the guidance of a staff member.
"You are Lin Haoran? Oh, I apologize. Mr. Pao did not mention that you were still so young. Please, have a seat."
When he saw Lin Haoran, this powerful figure who controlled Saudi Aramco was clearly surprised. However, he did not look down on Lin Haoran because of his age.
"Mr. Yamani, greetings. Mr. Pao is my senior. When he learned that I wanted to purchase oil, he happened to know that his relationship with you was good, so he introduced me to you."
Lin Haoran spoke politely.
He knew very well that the person in front of him was no ordinary figure.
Even when facing pressure from the American White House, Yamani was still able to remain calm and composed.
"Indeed, Mr. Pao is my friend. Saudi Aramco and his Global Shipping Group are very good partners."
Ahmed Zaki Yamani nodded in agreement.
Otherwise, given his status, he would never personally meet Lin Haoran.
For ordinary business matters, his subordinates could handle them.
"Mr. Yamani, I know your time is valuable, so I won’t waste too much of it. Let’s get straight to the point. I believe you already know why I came here."
"That’s right. This time, I have prepared sixty million US dollars in funds, and I would like to place an order for crude oil from your company."
Lin Haoran spoke directly.
"Sixty million dollars is not a small amount. Is Mr. Lin involved in the petrochemical industry?"
Ahmed Zaki Yamani asked curiously.
---
"Not at all. As for the crude oil I am purchasing, I have my own plans. The funds have already been prepared."
Lin Haoran smiled as he spoke.
He did not mention anything about the oil crisis in front of Ahmed Zaki Yamani.
Trying to show off his knowledge in front of an expert would be unnecessary and embarrassing.
He had come here purely for this transaction. There was no need to tell the other party the reason behind his oil purchase.
"Of course, there is no problem. With sixty million US dollars, based on the current market price of 12.87 dollars per barrel, you can purchase approximately 4.662 million barrels."
"Since you were introduced by Mr. Pao, I will give you a discounted price. At 12.5 dollars per barrel, you can get 4.8 million barrels of crude oil. How does that sound?"
Ahmed Zaki Yamani took out a calculator and made some calculations before speaking to Lin Haoran.
"Of course, that is perfectly fine. However, Mr. Yamani, I have another question."
"After I sign the contract with your company, I can make the payment at any time. I would like to know when I can take delivery of the crude oil?"
Lin Haoran asked.
"Saudi Aramco is one of the world's largest crude oil producers. For us, we naturally maintain a certain amount of reserves."
"Under normal procedures, we would need to arrange shipments according to the order queue."
"However, my relationship with Mr. Pao is very good. Considering Mr. Pao’s recommendation, if Mr. Lin wishes to take delivery, I can prioritize your shipment."
"You only need to arrange for an oil tanker to arrive at the port of Dammam."
Ahmed Zaki Yamani smiled as he spoke.
From Ahmed Zaki Yamani's words, Lin Haoran once again felt the influence of Pao Yue-kong in the business world.
However, this was not surprising.
It was said that in Pao Yue-kong’s reception room, there was a wall covered with photographs of him with various world leaders.
These included presidents, prime ministers, and kings from European, American, and other countries.
From this alone, one could see how great his influence was.
"Then I truly have to thank you, Mr. Yamani."
"I would like to ask something else. Does Saudi Aramco rent out oil storage tanks?"
Lin Haoran continued asking.
"Rent out oil storage tanks?"
"We do not have such a business. What exactly do you mean, Mr. Lin?"
Ahmed Zaki Yamani asked in confusion.
"I mean that after purchasing this batch of crude oil from your company, I temporarily do not plan to transport it back."
"Instead, I would like to store it at your company for the time being."
"The storage period would probably last until around June next year, which is why I wanted to ask whether your company’s oil storage tanks could be rented."
Lin Haoran explained his idea.
"Mr. Lin, if you do not intend to take delivery immediately, why don't you simply purchase the oil from us when you actually need it?"
Ahmed Zaki Yamani became even more puzzled.
"To be honest, Mr. Yamani, the price of crude oil changes every day."
"I am worried that by June next year, the price of crude oil will be very different from today's price."
"Therefore, I decided to purchase it in advance."
Lin Haoran smiled and answered.
Ahmed Zaki Yamani already had a guess about Lin Haoran’s purpose.
However, he did not pay much attention to it.
After all, even he could never have imagined that the Pahlavi dynasty in Iran was about to collapse.
Business was business.
Saudi Aramco was an oil-selling company. If a customer had such a request, they were not unable to provide assistance.
"Mr. Lin, our company can store the crude oil for you free of charge until June next year."
"During this period, you may take delivery at any time, and you will not need to pay any additional fees."
"These conditions can all be written into the contract."
"However, if you exceed this period, we will begin charging storage fees."
Ahmed Zaki Yamani spoke seriously.
"Then I truly appreciate your help, Mr. Yamani."
A smile appeared on Lin Haoran’s face.
He had not expected Pao Yue-kong’s influence to be this powerful.
---
"Alright, I will have someone prepare the contract first. Mr. Lin, please wait here for a moment."
Ahmed Zaki Yamani finished speaking, picked up the phone on his desk, and made a call.
He spoke in Arabic, which Lin Haoran could not understand.
However, he assumed that Yamani was informing his subordinates about the details of the transaction so they could prepare the contract.
About ten minutes later, a middle-aged man entered the office carrying two copies of a contract.
"Mr. Lin, please take a look and see whether there are any problems with the contract. If there is anything you would like to change, feel free to mention it."
Ahmed Zaki Yamani said.
Lin Haoran nodded and began reading the contract.
It was an English contract, so he had no difficulty understanding it.
The terms were clearly written:
*12.5 dollars per barrel*
*4.8 million barrels of crude oil*
*Total value: 60 million US dollars*
*Storage provided until June 30, 1979*
All the conditions had been included.
"Mr. Yamani, there are no problems with the contract."
After reading it, Lin Haoran smiled and said.
This transaction had gone much more smoothly than he had expected.
Sure enough, with connections like Mr. Pao Yue-kong’s, many things became much easier.
"Since there are no problems, then let us sign the contract."
"I still have some other matters to handle later, so I will not take up more of Mr. Lin’s time."
"May I ask when you expect to complete the payment?"
While speaking, Ahmed Zaki Yamani quickly signed his name on the contract and skillfully stamped the company seal.
Then he turned toward Lin Haoran and asked.
"Mr. Yamani, please rest assured. I will transfer the full amount to your company's account by tomorrow."
Lin Haoran smiled as he replied, while also signing his name on the contract.
He knew that the nearest location was Doha, Qatar, where HSBC had an office.
He could complete the transfer there.
"Then, Mr. Lin, I wish us a pleasant cooperation!"
Ahmed Zaki Yamani stood up and extended his right hand.
"A pleasant cooperation!"
(End of Chapter)
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