Chapter 146: That Time I Got Into the Oil Business in South America (1)

TL: Skye

While redevelopment was underway in Libertad, a new company opened its doors in a seven-story building near the Grand Plaza.

The company's name was Black Oil.

It was a company created through negotiations between Yu-jin and the American oil majors, a joint venture between San Marcos, ExxonMobil, ConocoPhillips, and Occidental.

The terms were clear.

The San Marcos government would invest $3 billion for a 20% stake, and in exchange for keeping the Venezuelan government in check, it would secure exclusive rights to refine Black Oil's crude, a business expected to generate billions of dollars in annual revenue.

ExxonMobil, ConocoPhillips, and Occidental would provide the technology, capital, and equipment in exchange for dividing the remaining 80% stake among themselves.

The CEO and executive team were filled with personnel dispatched by the oil majors, while the San Marcos government handled the auditing.

Black Oil had been created for one purpose.

The Orinoco Belt.

An oil field boasting the largest crude oil reserves in the world.

Everything was supposed to proceed smoothly.

Yu-jin and Telsy had already reached an agreement, and the oil majors had completed every preparation necessary for developing the field.

All they had to do was submit a formal bid to the Venezuelan government and receive approval. They could begin drilling immediately afterward.

Of the dozens of Blocks available, Black Oil had bid on Block A-7 in the central Orinoco Belt.

It was the golden Block, where the largest amount of crude could be extracted with the least difficulty.

And so Black Oil CEO James Harper submitted the bid for Block A-7 to the Venezuelan Ministry of Energy, but...

“Rejected?”

Soon afterward, he received an answer from Venezuela's Minister of Energy that he had never expected.

“I'm sorry. Another bidder has emerged for Block A-7.”

“Another bidder? I was under the impression this matter had already been agreed upon.”

“I know, but... the terms of the new bid are at a level that's very difficult for us to refuse.”

Harper narrowed his eyes.

“Who is it?”

The minister hesitated briefly before answering.

“It's... Chevron.”

“Chevron?”

Harper's expression twisted.

Chevron.

One of America's oil majors, and the only major oil company that hadn't been allowed into the Black Oil consortium.

It was also a company with a history of bad blood with San Marcos.

'Of all companies, it had to be Chevron?'

Harper knew the industry well.

The incident several years ago, when Chevron had been pushed out of offshore oil exploration north of San Marcos, was a famous story in the oil industry.

Later, when the Black Oil consortium was formed, President Yu-jin Choi had explicitly excluded Chevron.

Chevron had apparently decided to strike first before it could be pushed out of Venezuela as well, a country where it had a larger presence than any of the other oil majors.

“How much?”

“Excuse me?”

“How much did Chevron offer?”

“...A $5 billion signing bonus, with 70% of production going to Venezuela.”

“They're insane.”

The curse slipped out of Harper's mouth.

A $5 billion signing bonus was absurd enough, but the production share ratio was even crazier.

If Chevron handed 70% of the crude over to Venezuela, almost nothing would be left for Chevron.

'They're determined to push Black Oil out.'

Under those terms, there was no way to leave themselves a profit no matter what they did.

“I'm sorry.”

Harper clenched his teeth as he looked at the apologetic Minister of Energy.

“Understood. I'll be on my way, then.”

There was only one person who could resolve this problem.

On his way back after leaving the Ministry of Energy, Harper contacted Yu-jin.

In truth, this whole affair had begun two weeks before Harper went to Venezuela.

***

Chevron headquarters.

An emergency strategy meeting was underway in the executive conference room on the thirty-sixth floor.

Richard Coleman, Executive Vice President of International Operations, stood in front of the screen delivering his report.

“I'll brief everyone on the Orinoco Belt matter.”

Black Oil's logo appeared on the screen along with a diagram of the consortium's structure.

“ExxonMobil, ConocoPhillips, and Occidental have established Black Oil as a joint venture with the San Marcos government. Their objective is oil field development in the Orinoco Belt, and they're targeting Block A-7, known as the golden Block.”

The atmosphere in the conference room grew heavy.

Venezuela had traditionally been practically Chevron's backyard.

Even when the other oil majors pulled out, Chevron alone had remained and continued doing business there.

But things would be different if Black Oil came in disguised as a San Marcos company.

San Marcos and Venezuela already enjoyed close relations, and Drump and Yu-jin Choi were extremely close as well.

Worse still, the political situation in Venezuela was utterly chaotic.

What if Telsy's government decided to expel Chevron?

They might be forced to pack up and leave overnight.

Having followed the thought that far, Chevron CEO Mark Anderson spoke.

“Is there any way for us to get in now?”

“President Yu-jin Choi of San Marcos has completely excluded us.”

The conference room fell silent. Everyone knew why.

Several years earlier, Chevron had held the exploration rights to offshore oil fields north of San Marcos.

Exploration had confirmed substantial reserves, but Chevron had bluffed during negotiations, claiming the fields had no potential and threatening to withdraw in order to gain the upper hand.

The calculation was that the San Marcos government would panic and offer better terms.

But Yu-jin Choi, who had been a Minister at the time, hadn't fallen for the bluff.

Instead, he notified Chevron that the contract was being terminated.

Chevron's vice chairman personally called and asked for more time, but Yu-jin coldly refused.

In the end, Chevron was driven out of San Marcos.

Unable to let the humiliation stand, Chevron later financed an attempt to plunge San Marcos into Civil war. The attempt failed, leaving the company with massive losses.

And now it had been excluded from the Black Oil consortium as well.

ExxonMobil, ConocoPhillips, and Occidental had all been invited, while Chevron alone had been left out.

It was only natural that Yu-jin Choi didn't trust Chevron, but that didn't make the blow hurt any less.

CEO Anderson's face reddened.

“The shareholders are raising concerns as well. Our competitors will be making money from the Orinoco Belt for decades. If we're the only ones standing on the sidelines watching, it'll be disastrous for our stock price.”

Anderson tapped the table.

“If we couldn't get into the consortium, why don't we just go in ourselves?”

“Yes. I was thinking the same thing.”

Coleman advanced to the next slide. A map of the Orinoco Belt appeared, with Block A-7 highlighted in red.

“Black Oil intends to bid on Block A-7. We simply submit our bid for A-7 first, under terms the Venezuelan government can't refuse.”

“What terms?”

“A $5 billion signing bonus. And a 70% production share ratio for Venezuela.”

Murmurs rippled through the conference room.

“There'll be almost nothing left for us under those terms. Unless oil goes above $150 a barrel, it'll be difficult to turn a profit.”

“I know.”

Coleman answered firmly.

“But right now, I believe we need to focus on pushing our competitors out rather than on immediate profits.”

Coleman pointed at the screen.

“Venezuela is changing rapidly. If we get pushed out here, we could lose Venezuela entirely. We can't simply stand by while Exxon and Conoco join forces with San Marcos and monopolize Latin America's crude oil.”

Coleman raised his voice.

“Even if we take a loss now, securing the Block has to come first. Oil prices will rise in the long run. If the blockade of the Strait of Hormuz drags on, prices could reach $200 a barrel. At that point, the numbers work.”

CEO Anderson leaned back in his chair and stared at the ceiling.

“We can't let them take our own backyard from us.”

It was spoken quietly, but the words carried throughout the conference room.

“Coleman.”

“Yes.”

“Proceed.”

Coleman bowed his head.

“Yes, sir. I'll submit the bid to the Venezuelan Ministry of Energy.”

Chevron began to move.

***

And now. I received a call from CEO Harper.

“What? They rejected it?”

For a moment, I thought I'd misheard him.

“Chevron offered $5 billion and 70%?”

It was absurd, but at the same time, I understood.

From Chevron's perspective, they'd made a reckless move because they were afraid the Black Oil consortium would take over the Venezuelan market.

“Understood. I'll contact them right away.”

As soon as I hung up, I called Telsy on the hotline.

“...I expected to hear from you.”

There was an apologetic note in Telsy's voice, but I wasn't in the mood to care about that right now.

“Block A-7 was part of an agreement between our two countries. I find it regrettable that you've overturned it unilaterally.”

I deliberately kept my voice cold.

“I wanted to keep my promise too. But...”

“......”

“It's five billion dollars. In cash. Venezuela desperately needs that money right now. Government salaries are overdue, and we don't have enough money to pay for food imports. Without this money, the government itself could collapse.”

“......”

“Just as Your Excellency rebuilt San Marcos, I have to rebuild Venezuela. Please understand.”

Anger surged through me.

Truthfully, I wanted to start shouting right then and there.

We won't take another refugee. We'll send back every last one we've already accepted. We'll throw all the Venezuelan workers out!

If I threatened her like that, Telsy might have backed down.

But.

The desperation in Telsy's voice stopped me.

'Well... she's fighting desperately to save her country too.'

At the same time, I saw my own desperate past reflected in her.

I'd done anything for my country too. Telsy was no different.

“Whew...”

My anger subsided. But I couldn't back down empty-handed.

“Acting President.”

“Yes.”

“I'll let the matter of giving Block A-7 to Chevron go.”

“Thank you for understa...”

“But I have a condition.”

“......”

“Assign Black Oil a Block comparable in size to A-7.”

I heard Telsy steady her breathing on the other end of the line.

“...Block A-12 should be possible. It's slightly less attractive than A-7, but it's still a very good Block.”

“Good.”

“I'm truly... sorry.”

“We're the ones making the concession this time. Remember that.”

“I won't forget.”

I hung up and immediately contacted Harper.

“CEO Harper, we're giving up on A-7. Submit a new bid for Block A-12. Move quickly.”

“Understood.”

I hung up and leaned back in my chair.

“Chevron, huh...”

***

That evening.

Isabella and Lucio met at UJF headquarters beneath the Presidential Palace.

“You heard about Chevron, right?”

Isabella said as she sat down.

“Yes. I heard they took A-7 from us.”

Lucio replied calmly, and Isabella narrowed her eyes.

“Are we just going to sit back and watch?”

Lucio looked at Isabella. His eyes held a glint cold enough to frost the air.

“Of course not. We can't simply leave the bastards who dared cause His Excellency trouble alone.”

“How are we going to respond?”

“Preparations are already underway. I intend to repay them so thoroughly that they'll never dare look toward San Marcos again.”

A satisfied smile appeared on Isabella's face.

“As expected of Director Lucio.”

Isabella rose from her seat.

“I'll look forward to it.”

“I won't disappoint you.”

Isabella and Lucio looked at each other.

“For the Sun of San Marcos.”

“For the Sun of San Marcos.”

The statue of Yu-jin watching over the two of them gleamed.

*****

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