"Then we will consider that Blonox will invest 12 million dollars annually to produce 15,000 tons of PVC."
"Sounds good. Let's sign the contract."
"Should I sign first? A 50-50 share, a profit distribution rate of 60-40, 305 days of operation per year with an 85% utilization rate, and as a special condition, excess production belongs to the Korean company... Everything looks good. Let's proceed."
Yeom Won-chul, the Deputy Minister, signed swiftly.
With this, contracts were signed for various factories in the Ulsan Industrial Complex, including PVC, polyethylene, ethanol, acetaldehyde, alkyl benzene, synthetic rubber, methanol, paper, cold-rolled steel plates, glass, and electrical cables.
In total, the investment amounted to nearly 200 million dollars.
It can be said that the initial investment plan was greatly inflated.
"We'd like Bechtel to handle the 100MW power plant."
"It's a large power plant. What are the terms?"
"Bechtel will handle the design, GE will supply the turbines and materials, and Daese Shilup will take care of the construction."
"How capable is Daese Shilup in construction? Even if our supervisors handle the engineering and oversight, you'll need large cranes and various heavy equipment."
"Don't worry. We have all the necessary equipment, and the equipment we received from the U.S. military engineers is safe."
We don't have it yet, but with 70 million dollars in hand, we can acquire the equipment as soon as we return.
Such exaggeration is not a lie for a businessman.
"Considering the many investors like DuPont, it makes sense to build the power plant."
Exactly.
By convincing DuPont and Blonox that the power plant is essential for their success in Korea and reassuring Bechtel and GE that American companies are investing, everything falls into place.
Moreover, with such investors stepping in, the government won't be able to criticize me for independently signing a power plant construction contract.
If investors refuse to sign contracts without a power plant, and I secure 200 million dollars of foreign investment by claiming a power plant is necessary, it's game over.
It's much better to build a power plant with American companies than to bring in Japanese firms.
Historically, Japanese companies led the construction of the Ulsan petrochemical complex.
They handled the design, material procurement, construction, and supervision, leaving Korean companies with only simple labor tasks, resulting in no technological accumulation and transferring American loans directly to Japan.
Such a mistake should never be repeated.
"Given the scale, the special conditions must be strictly followed. There must be technology transfer for BOP (Balance of Plant) systems like boilers, turbine generators, and water treatment facilities."
"Don't worry. For a state-of-the-art combined cycle power plant, we will provide the necessary technical training."
Bechtel was also keen.
This project was seen as an opportunity for Bechtel, which had been losing ground to Japan's low-price offensive in the global construction market.
Though core turbine technology wouldn't be transferred, acquiring basic power plant technology like auxiliary systems was necessary.
"We'll dispatch personnel starting tomorrow."
"Tomorrow?"
"Yes, they are already in the country."
Apart from the students, there are 60 engineers and skilled workers. About half will be deployed.
"Great. Koreans seem to handle things quickly."
Not just quickly, very quickly.
"Deputy Minister, can you finalize the contract?"
"Leave it to me."
Yeom Won-chul no longer hesitated with contracts worth tens of millions of dollars.
With 200 million dollars worth of contracts already signed without government approval, there was no more hesitation.
Once soaked in the rain, there's no need to jump.
"See you in Korea."
Having secured the power plant as the final piece, we succeeded in the negotiations. I must have drunk at least ten Jack and Cokes.
I wondered if Ulsan might grow bigger than Seoul.
"Is everything wrapped up?"
Van Flint approached me at the right moment.
"Yes, it's all wrapped up. Thank you for arranging this wonderful event."
I was genuinely grateful.
Securing 200 million dollars in foreign investment was significant, but it also set a precedent for private economic cooperation between Korea and the U.S.
Historically, Korea's economic dependence on Japan increased from the mid-60s.
It was also part of Japan's strategy towards Korea.
In this revised history, Japan's influence on the Korean economy would be minimal. No, let's erase it completely.
"I'm glad you're happy. Shall we move on to the second round?"
Van Flint led me to a private room. Inside, a man was enjoying a cigar. It was Goodman from Union Oil, whom Van Flint had introduced at the start of the party.
"Welcome, CS!"
Nancy was sitting opposite him.
I had wondered when she would show up.
"Long time no see, lady."
I lightly kissed her hand.
She was a crucial sponsor who provided a billion dollars.
It was only natural to show my utmost respect.
Van Flint, Nancy, Goodman from Union Oil, and I settled down.
"Haha, I felt a bit awkward smoking a cigar alone, but now I have company."
"How about a Cuban cigar?"
"What? How do you have these? These are hard to come by even with money."
"I was invited to such a great party; I must reciprocate."
I presented the cigar I received from Godell, and Van Flint's eyes lit up.
It must indeed be a fine cigar.
"With cigars, Jack and Cokes, and our preferred drinks in hand, shall we get down to business? Goodman, tell us about this significant opportunity that warranted a private discussion."
Nancy brought up the topic smoothly.
"Our Union Oil has discovered an oil field in Indonesia. It produces 100,000 barrels a day, with estimated reserves of 500 million barrels."
"Oh, congratulations."
Nancy clapped her hands with joy.
"It's too big to sell easily."
Van Flint leisurely smoked his cigar.
Back then, the major players in politics and business were all from oil, military, and finance companies, so they were well-informed about each other's businesses.
"... Unfortunately, yes."
Goodman responded with a wry smile.
Once oil is successfully drilled, it cannot be stopped from gushing out. It can't be tapped into whenever needed. It must be sold through pipelines or tankers, or stored if not sold. However, there are limits to storage, causing oil prices to fluctuate.
"As it's a joint venture with Indonesia, we are responsible for selling the crude oil. If we fail to sell it properly, the Indonesian government won't grant exploration permits again."
If our country had succeeded in oil development, we would have cheered with joy, but Union Oil is an American company.
It's not easy for American oil companies to sell oil in the domestic market.
That's because the Seven Sisters—Exxon, Gulf, Socal, Socony, Texaco, Anglo-Persian Oil, and Royal Dutch Shell—control 85% of the global oil market, including the U.S. domestic market.
In fact, it's a monopoly.
These seven companies build refineries in various countries and sign long-term supply contracts to sell oil.
Gulf has already entered our country.
Though these major oil companies shrink rapidly with successive oil shocks, that time is still far off.
"You mean you want to sell oil to Korea."
"Yes, that's right."
"You must know that Gulf is already here."
"In a free market, there is always competition. I've heard about the establishment of a petrochemical complex. We will invest 76 million dollars. We'd like to build a refinery with a capacity of 100,000 barrels."
I understand why three people are needed for this task.
Nancy will handle Gulf's complaints, Van Flint will influence the Korean government, and I will collaborate as a joint venture partner.
I like it, but expressing that would be amateurish.
"If a competitor enters, the Korean government would prefer a member of the Seven Sisters, wouldn't they? Right, Mr. Goodman?"
"That's why we need CS's help. Free factory land, half the utility costs, and five years of tax exemption. We need to sell oil in Korea."
It's not bad, but we need more.
What's 76 million dollars?
"That's not enough to quell Gulf's influence. I have a close relationship with Gulf, and I monopolize naphtha supply..."
"We can also supply naphtha exclusively. Let's partner up, 50-50, on equal terms."
He quickly proposed a partnership. Nice.
"A partnership... Not bad. If we build a refinery in Incheon instead of Ulsan and construct a 100MW power plant, I can persuade the government. If it appears the government is forcing the partnership, Gulf won't have any complaints against me."
A power plant is necessary in Incheon too.
My Seongsu-dong factory has power issues.
Of course, since we now have a shipping company, we should actively develop Incheon Port.
"Are you saying we should also build a power plant? The total construction cost will be at least 100 million dollars."
"We need that kind of bait to get things done. Korea has such poor electricity conditions that they implement limited power supply. If we build a power plant, politicians will welcome it with open arms."
"Oh, that's the perfect bait. Building a power plant in Incheon can also supply electricity to Seoul."
Nancy clapped her hands with a smile.
Impressive. She knows Incheon and Seoul?
"And I'd like the refinery tower to have a capacity of 150,000 barrels."
"How outrageous. You're talking about building a 150,000-barrel refinery to sell 100,000 barrels."
"We'll just design the distillation tower that way. Even if we sell it a bit cheaper, we can claim it's thanks to the large-scale production from the ultra-large refinery and avoid being
accused of price dumping. Gulf won't be able to nitpick."
"Indeed, reducing the price by just 2% compared to Gulf will make it easier to sell. The products will sell out as soon as they are produced. But, CS! Is it okay for a Gulf ally to reveal such a strategy?"
Van Flint gave me a meaningful smile. Does he know my intentions?
"Money has no nationality. I'll do my best for either Gulf or Union Oil."
I pretended to be a Wall Street entrepreneur.
Goodman, who initially seemed skeptical, began to look interested as the conversation progressed.
"Then I'll ask the Indonesian government to increase Union's profit margin and just tolerate Gulf's complaints."
"And please help with the oil transportation. The Silverstein family, that is."
Goodman brought up oil transportation, prompted by Nancy.
The Silversteins are a family devoted to international trade and diplomacy. They must have stakes in prominent shipping companies.
The reception at Portland Harbor was likely thanks to Nancy's influence.
"Nothing gets overlooked. Nancy from the Department of Defense appeases Gulf, and Nancy from the Silverstein family assists with transportation. Let's sign first."
Nancy picked up the pen first.
"Wait, there's a special condition. As with previous contracts, excess production goes to Daese Shilup."
"Sure. But the profit distribution for the planned production is 60-40, right? Of course, we take the 60."
Goodman smirked at me.
How can there be excess production in a refinery?
Refining efficiency is generally fixed.
But I am a 21st-century engineer.
"Of course."
"Let's include it as a special condition."
As expected of the Silverstein family, Nancy drafted the special conditions and signed it within that short time.
Van Flint, and even I, couldn't find a single flaw.
"I don't know where Incheon is in Korea, but let's pop the champagne there."
"See you in Korea, Goodman."
"Good luck."
The three of us bid farewell to Goodman.
"Well done. Did you secure 300 million dollars? That's three times more."
"But can refineries really have excess production?"
"It's not difficult. Indonesian oil is low in sulfur, making gasoline and kerosene high-quality. Anyone from the Seven Sisters would gladly exchange 10,000 barrels of poor-quality Saudi oil for 15,000 barrels."
"Wow..."
"Really, exchange for Saudi oil?"
Both were surprised.
Well, anyone in the 21st-century refinery industry would think of that.
Korea's 21st-century refineries are top-notch globally, and they import a larger quantity of Saudi oil for the same price.
Of course, it's possible because I know the catalysts and processes.
"Why are you so surprised? Didn't you plan to handle maritime transportation from the Middle East to the Pacific, passing through Asia?"
"... Oh my..."
"How did you know?"
"Why would international experts on Asian affairs gather for a single oil company?"
Nancy was speechless.
"Yes, from Taiwan, Korea, Japan, Guam, and the U.S. mainland, a maritime transportation network is needed."
"Is that really all? Considering the Silverstein family is involved, there must be something in the Middle East too."
"!!!!!"
"..."
Both of their expressions hardened.
Of course, I know as a 21st-century person.
The Middle East powder keg is constantly exploding.
In 1966, Syria weaponized oil by blocking pipelines, and in 1967, Israel launched a surprise attack on Arab countries, leading to the closure of the Suez Canal and a surge in oil prices.
It's 1966 now, so Israel is preparing for war.
Nancy, a high-ranking Jewish official and U.S. Department of Defense international relations officer, must be aware of the situation.
"Whatever happens in the Middle East doesn't matter. Just give me a few idle ships, and I'll handle any dangerous routes, whether it's the Arabian Sea, the Malacca Strait, or the Tonkin Gulf. The Silverstein family should focus on the Atlantic. Leave the other side of the world to me."
"You really know everything..."
"I told you. CS will pass the test with flying colors."
Finally, I have a foothold in the giant oil cartel.