Petroleum is a hugely profitable industry. If a monopoly is formed, the profits will be even more terrifying. Li Xuan felt a little unbearable, so he took the initiative to split it up.
However, because the petroleum industry is an important livelihood industry, whether it is a spin-off petroleum company or a company that later obtains a refining and petroleum product license, it is a wholly-owned enterprise owned by the Royal Assets Division or the Ministry of State-owned Enterprises.
If the situation is feasible in the future, Li Xuan will continue to relax restrictions and allow more companies under the Ministry of State-owned Enterprises and companies from the Royal Assets Division to participate.
As for private enterprises, to be honest, Li Xuan is not worried about them.
The oil industry is too profitable, and money attracts people's hearts. Once private capital is involved, it will easily cause trouble.
Anyway, the imperial-owned enterprises and state-owned enterprises in the Datang Empire also need to follow the operation methods of ordinary commercial companies. The taxes they should collect will not be less, and the laws they should abide by will not be less. It is just that the shareholders are the Imperial Assets Department or state-owned enterprises.
Just the department.
Naturally, these changes at the top have nothing to do with Zuo Chengsheng. His Xihai Trading Company is not involved in oil exploration and refining at all. He is just a second-rate dealer.
He has always believed that in doing business, you should do what you are best at and the industry you are most familiar with.
He has made quite a name for himself in the trading industry. The revenue of a Xihai trading company in the first quarter has reached millions of yuan.
Although their trading company is engaged in the business of second-hand traders, and the profits of the West Sea trade are now tending to normalize, the profits of ordinary goods are relatively low.
But the profit from kerosene is very high.
After doing well in the kerosene business in the Ottoman region, he was preparing to enter the market in the Safavid dynasty.
As currently the largest overseas sales agent of Royal Petroleum Company and Imperial Oil Company, um, or the only overseas agent, Xikai Trading Company is still highly valued by these two oil companies.
Especially when the upper echelons of the empire saw that the profits of these two oil companies were so high, they had already split them up. Among them, Royal Petroleum Company was directly split into six companies with the theme of oil fields. Even Suzhou Oilfield
They were all spun off to form the new Northwest Petroleum Company.
Even the oil fields in the Baku area are divided into eight, and almost eight oil companies own some of the oil wells in the Baku oil fields.
Of course, Royal Petroleum Company, as the main body, is still the largest company, and they still control about 60% of the production capacity of the Baku oil field.
At the same time, the entire Baku refinery was inherited by them.
Although they have already reinvested in building more refineries, in a short while they actually have a lot of crude oil that needs to be resold to several other newly established oil companies, especially Datang, which has been assigned to the Kuri Refinery.
Standard Oil Company became their major customer.
Currently, some of the oil wells in the Baku oil fields and the Baku refinery have become Royal Petroleum's most important assets.
They are preparing to expand production capacity.
Although most of the production capacity is still sold locally by the Games, part of the production capacity can also be freed up to meet the West Asian market.
The Ottoman region and even the further Central European regions have actually been developed by them, and next, they are preparing to enter the Safi market.
It turns out that before, there were scattered trading companies selling kerosene to the Safavid dynasty to make money.
But they don't have agency rights and don't have many sources of supplies, so they haven't grown in scale. They only sold more than 100,000 last year.
Now, the Royal Petroleum Company is preparing to take advantage of the shortage of supply capacity of several other oil companies in West Asia to consolidate the kerosene market in the Ottoman region and at the same time actively expand the kerosene market in the Safi region.
As an old partner, Xihai Trading Company naturally became their first choice.
Imperial Oil Company also has this idea. They also invested in building a refinery in Baku. Although the scale is a bit smaller, it can be regarded as the only two refineries in the Baku area today.
They have also been impacted by the split of the domestic oil industry and are trying to seize the West Asian market in advance.
Of course, more importantly, in the past period, Royal Petroleum Company and Imperial Oil Company have continued to increase their stakes in Xihai Trading Company through investment and other means.
Before the agency rights for the Safi region were signed, Zuo Chengsheng had already given away more than ten percentage points of his shares. As of now, the remaining shares in Zuo Chengsheng's hands are actually only 48%.
But Zuo Chengsheng was still very excited about this!
Although these two oil companies took out the company's equity, they also gave money to help the company develop and grow, and they did not take it for nothing.
And he is still the largest shareholder, so he gets more money than he deserves.
Because after the change in equity, Xihai Trading Company obtained the kerosene agency rights of these two oil companies in the Safi region.
What's more important is that it has also gained a vital kerosene purchase channel.
Today's kerosene is in short supply. Almost all the production capacity of the Kuri Refinery needs to be supplied to the local market. Even the production capacity of the Baku Refinery, most of it needs to be supplied to the domestic market.
In order to ensure the supply of kerosene in the domestic market, further control the price of kerosene, and make kerosene affordable to more people, many bosses in the empire have issued well-intentioned warnings to companies in the oil industry and quoted the words of Sheng Tianzi,
It is said that enterprises must have a sense of social responsibility!
What is responsibility?
Giving priority to the domestic market is a sign of social responsibility!
Otherwise, if you ship a large amount of cheap kerosene for sale abroad, your oil company will make money, but what will the domestic people do? Continue to use expensive whale oil or other high-priced oil?
Or do you mean to discredit and not light up?
Therefore, the newly established six new oil companies: Northern Petroleum Company, Datang New Standard Oil Company, Northwest Petroleum Company, Nanyang Petroleum Company, Ocean Oil Company, and Oriental Petroleum Company, as well as two new oil companies, Royal Petroleum Company and Imperial Oil Company.
The old companies that were split up were actually under great political pressure.
Most of its kerosene production has to be given priority to satisfy the domestic market, which means that the share of kerosene that can be exported is very small.
Calculating this, several refineries in Baku can allocate about 15,000 tons of kerosene output for export this year. In addition, the Sidan refinery also has a quota of about 5,000 tons.
In other words, this adds up to a total of only 20,000 tons of kerosene export quota!
And their Xihai Trading Company monopolizes 12,000 tons of it!