What the hell is a private enterprise?

Chapter 329 Cover-up
Goose City, Negotiation Bureau.

After all the oil tanks at Gongzhen Port were filled with crude oil, CNOOC couldn't wait to send a cruise ship to collect it all.

This naturally leads to the question of oil sales entities.

Su Weiguo led the Qiongzhou State-owned Assets Supervision and Administration Commission to Echeng to begin negotiations with Zhao Hande for the newly established oil company.

Before the latter arrived, they first sought to form a united front with Tang Wen:

Su Weiguo: "The State-owned Assets Supervision and Administration Commission (SASAC) doesn't have many requirements regarding shares. It just hopes to have a position that can help promote the development of the petrochemical industry. 5% is enough."

Of course, even if you can't come up with this money all at once, see if you can find any state-owned enterprises, land, other islands, or tax policies that you can use to offset the cost.

Clearly, Su Weiguo was much more honest than the small fry he had encountered in Beijing last time.

Even if the others who came with him wanted to speak, he silenced them.

Tang Wen nodded to himself and simply said:
"Forget about the land, just rent me Feixin Island too, and I'll use it to exchange for it."

Feixin Island is located below Lile Shoal and is very close to Gongzhen Reef.

The difference is that part of it is above water and belongs to a small island, but it is only 0.04 square kilometers.

However, it is surrounded by several kilometers of submerged reefs, which are much shallower than Gongzhen Reef. It is easy to fill in two or three square kilometers of land, which can also speed up the process considerably.

"it is good!"

Su Weiguo readily agreed, and then they began discussing the operation of the oil company:

“Normally, the taxes and fees for oil extraction are very high, including resource tax, business tax... Now it has been changed to value-added tax, income tax, and environmental protection and operation taxes. The total tax and fees at five or six levels are generally more than 40%, which is a very high figure.”

"hiss--"

Although Tang Wen knew that the tax on oil was high, such an exorbitant amount still made him feel the pinch.

Even though he got the crude oil for free, he felt it was too much of a rip-off.

Su Weiguo continued:
"Because our domestic oilfield reserves are small, taxes and fees will continue to increase once the extraction volume exceeds a certain limit. There are also tax reduction policies, but these are all for oilfields with poor quality, and Nansha is definitely not an option."

I can only think of one way to reduce taxes:
"Gai Jin personally funded the construction of such a large artificial island, which is a permanent, long-term asset. Investing in infrastructure in remote areas, I think we can strive for certain tax incentives or exemption from certain tax periods."

Tang Wen: "Let's set a timeframe; it'll be easier to achieve if we set aside the immediate timeframe."

Long-term preferential policies are too uncertain. Tang Wen needs a lot of funds in the short term, but in the long run, a slight increase in tax rate is not a big deal. He can just keep expanding the islands.

Su Weiguo: "If that's the case, we can try to get a tax exemption for 1 to 2 years."

"That's enough, that's enough."

Even if we only manage to secure one year, it can bring in tens or hundreds of billions of yuan in additional funds, which can greatly accelerate the early investment process of Gaijin.

In addition, Tang Wen had another idea about the artificial island that had been created:
The shipyards in the Greater Bay Area are somewhat inconvenient, and their production capacity has always been tight. What if we build one in the Spratly Islands?
……

[Nansha Petroleum Development Company Registered and Established with a Registered Capital of 10 Billion Yuan!]

[Tang Wen revealed that the land reclamation project in the Nansha Islands will be further expanded.]

At the end of March, before domestic news officially announced the authenticity of oil extraction in the Nansha Islands, McDonnell Douglas helped Gagekin dispose of its fourth shipment of crude oil this month.

Two separate transactions of 20 tons each, using the same high-grade crude oil, were cleverly timed to capitalize on the final surge in oil prices, yielding a whopping $3000 million. This money was quickly allocated and used entirely to cover Tang Wen's extensive purchasing spree in the United States, much to the satisfaction of the Imperial government.

Half a day later, due to news from the Nansha Oil Development Company, the upward trend of crude oil prices in the first half of the year was finally interrupted, and the price fell slightly by 0.5% before the close.

Although there has been some reaction from the outside world, it is still not believed that Gaijin's Nansha oil field can affect the world oil trend.

After all, even if a newly discovered oil well has a high output, it is still insignificant in terms of global demand.

Only McDonnell Douglas believed that Tangwen's claim of an annual production of 5000 million tons was true and continued to prepare to make a fortune in the stock market.

Many lawmakers and federal officials also caught wind of this and quietly followed suit.

Domestically, it has been confirmed that a second large-scale business delegation will be organized in April. The relationship between the two sides of the Pacific continues to warm up, and everything looks peaceful and prosperous.

However, aside from the potential economic crisis, the Imperial Navy's press conference also revealed something unusual.

On March 22, the frigate Ingred suffered a secondary explosion due to improper ammunition storage, resulting in more than 10 deaths and hundreds of injuries. It has been towed back to port for repairs.

Secretary Johnson ordered the formation of a special investigation team to conduct safety inspections of all warships and to hold those responsible for the incident accountable.

Not too surprising to Tang Wen, Johnson did not dare to reveal the scandal of the USS Ingredient being attacked by a submarine off the coast of Florida.

Besides losing face, the most important thing is still losing face:

Unlike the previous two encounters with mysterious forces, this time the wreckage of the sunken submarine did not mysteriously disappear.

But that's precisely the problem. After a rough identification, it turned out to be a 60-year-old U-boat!
A piece of garbage with absolutely no silent design, a drainage capacity of hundreds of tons, and performance that is extremely poor!

If everyone knew that this piece of trash had wandered into the waters off Florida and almost sunk an advanced frigate, Johnson might end up in the same situation as Dalton!

Moreover, the entire Imperial Navy will undergo a major purge, and countless people will be held accountable for it.

Since the formation of the Great White Fleet, this is the first time that Imperial warships have been attacked in coastal waters, and its terror level is even greater than that of Pearl Harbor.

If the Second Fleet also possessed the Mushroom-shaped missiles, launching them at such close range would have unimaginable consequences.

Therefore, this time the Imperial Navy united as one and paid a huge price to suppress it in the name of the overall situation.

However, behind the scenes, the level of anti-submarine defense on the homeland has been raised to an unprecedented level.

Not only did all the warships and submarines of the Atlantic Fleet launch intensive anti-submarine warfare, but most of the warships in Europe were also mobilized and are on their way back to their home countries.

Even many conventional submarines that have been decommissioned are preparing to return to service and join the underwater hunt.

The Pacific Fleet also urgently began to redeploy frigates and destroyers to enhance anti-submarine capabilities on the west coast.

Even the Air Force recalled some of its anti-submarine aircraft in the Western Pacific and placed orders for more.

The people on the mainland remained oblivious, only cursing the captain of the Ingrand for negligence and the loss of an extremely expensive frigate.

At this critical juncture, the IAA's global reach began to send back messages:
Several regional forces have been approached by suspected members of the Second Fleet, who have been asked to help them smuggle personnel and supplies using submarines. More than a dozen cases have been uncovered so far.

In just half a month, their presence was felt throughout southern Meizhou and Europe.

(End of this chapter)