African Entrepreneurship Record

The Russian Labor Party and the current chaos faced by Russia have not caused much of a stir globally. On one hand, the November (Russian calendar October) Revolution erupted too suddenly, and on the other, the major powers are still embroiled in war, so no matter how significant Russia’s issues might be, they must be prioritized later.

Just like in the previous life, other countries only began large-scale interventions in Russia’s internal affairs after World War I ended. Currently, most major powers have no time to deal with Russia’s matters.

Of course, East Africa is an exception, but the East African Government currently does not intend to confront the Russian Labor Party. Instead, they strive to extract as many resources as possible from Russia.

Baku.

Since the last century, Baku has been one of East Africa’s most important overseas oil import bases, and with its rich oil reserves, Russia has overtaken Austria-Hungary and Romania to become East Africa’s largest oil import nation in Europe.

Moreover, due to the boom in the internal combustion engine industry, the output of the Baku oil fields has increased significantly compared to the previous life, with its population growing by nearly 100,000.

Thriving on oil, Baku’s city construction level is quite high, with numerous luxury residences, theaters, and more built, turning it into an entertainment center, a city of pleasure, and even a decadent city. Oil has brought everything, including luxury goods, cars, clothes, and high fashion.

Simultaneously, numerous well-known companies, families, and even countries eyed investment opportunities in the Baku oil fields at the beginning of the 20th century.

After the outbreak of World War I, Baku’s oil became even more in demand, with the current situation being that regardless of how much oil Baku produces, the European battlefield can consume it all.

However, under such extreme prosperity, East Africa’s oil companies are showing a trend of retreat in Baku.

Describing the situation as a "retreat" is not an exaggeration. After all, competition among various oil companies in Baku is extremely fierce, and East Africa’s oil companies are mostly state-owned enterprises, so from an outsider’s perspective, it’s likely that this inefficient enterprise model leads to losses.

In reality, investing in oil in Baku leading to losses is almost impossible; even companies with average capability, as long as they ensure the normal operation of oil wells, are essentially printing money.

Bela Chemical and Petroleum Refinery.

This is an oil refinery invested by East Africa in Baku, Russia, managed by Altehoffen. From the name, it’s clear this refinery is closely related to Bela City in East Africa.

And indeed, Bela City is a focal industrial development city in East Africa, especially in the energy and chemical sectors, where it occupies an important position among East African cities.

As the gateway port to the central industry, Bela City has always been the main external channel for the Bohemian Industrial Zone in East Africa, led by Harare.

Although the Bohemian Industrial Zone is abundant in resources, it lacks rich oil resources in the energy sector, making it heavily reliant on imports.

Its oil sources are primarily the three oil-producing countries of Central and Eastern Europe, ranked by production as Russia, Romania, and Austria-Hungary.

In recent years, with East Africa’s development of East Kalimantan, oil from East Kalimantan has also begun rapidly transporting towards the Bohemian Industrial Zone.

However, no matter where it’s transported from, it must pass through Bela City, where it’s refined and processed, before being distributed to various factories and enterprises within the Bohemian Industrial Zone.

The Bohemian Industrial Zone is East Africa’s largest heavy industrial center, backed by strong industrial strength and a market.

Thus, the oil industry and chemical industry in Bela City have developed rapidly, and the Bela Chemical and Petroleum Refinery is one of the enterprises, also a state-owned enterprise in East Africa.

The refinery in Baku is an investment by this East African state-owned enterprise, constructed in 1907, making it relatively historic and considered one of the well-known refineries in Baku.

However, starting from a year ago, rumors of poor management began to circulate regarding the Bela Chemical and Petroleum Refinery, sparking interest among surrounding businesses.

After all, the Bela Chemical and Petroleum Refinery (Baku) isn’t small in scale. While the equipment might not be new, it’s definitely not outdated either.

If one can acquire this refinery, it would certainly enhance their influence in the Baku region. Moreover, the oil industry in Baku remains in a rapid development phase; as long as the European war doesn’t end, there’s no need to worry about order issues.

"Mr. Altehoffen, do you really intend to let go of this refinery you have painstakingly managed?" Billy Nobel asked Altehoffen, the general manager of Bela Chemical and Petroleum Refinery.

Altehoffen, with a worried expression, replied to Billy, "Of course, Mr. Billy. Actually, I had the idea of selling this refinery as early as a year ago. Unfortunately, you know our refinery has a national background, so certain procedures must be followed. That’s why I’m only selling the refinery now."

Billy squinted his eyes and said, "I understand, I understand. Generally speaking, government intervention in a company’s production activities is never a good idea, especially in terms of efficiency. I’ve had my opinions about your refinery’s management model for quite some time, so I completely understand your difficulties."

The common problems of state-owned enterprises are never a secret. For example, in Germany and Austria-Hungary, many enterprises have national backgrounds, or just like numerous national arsenals worldwide, Billy has also interacted with them.

Of course, Billy’s most interactions have been with Russians, given that Russia is the foundation of the Nobel family.

Billy Nobel hails from a wealthy Russian family, the Nobel family. Their primary investment in Russia is oil, with dozens of oil-related factories belonging to the Nobel family in Baku.

To be more straightforward, the Nobel family is the largest investor in Baku locally, even East African enterprises, Rockefeller or Rothschild families cannot compare to the Nobel family’s local dominance.

This is quite understandable, after all, the Nobel family is Russian, and the Russian government will naturally provide them with conveniences and more support.

Depend ing on the oil industry in Baku, the Nobel family also became one of the richest families in Russia, demonstrating the importance of Baku to the Nobel family.

This time, Billy’s visit to discuss the transaction of the refinery with Altehoffen is a new attempt by the Nobel family to expand their business locally.

Altehoffen, seemingly in agreement, said, "Billy, you’re the one who knows me best. State-owned enterprises just can’t compare to your freedom. It’s only because I lack the ability and courage that I haven’t started my own business sooner."

"It’s really shameful to say. If I had the ability, such a highly promising factory wouldn’t be suffering such severe losses under my management."

Billy said, "Don’t belittle yourself, man. You became a manager through your own merit. Besides, this is a problem of corporate systems, not a reflection of your ability. If I were working in such a company and couldn’t act freely, I might be worse off than you!"

Altehoffen waved his hand and said, "Forget it, don’t comfort me. Let’s not talk about these sad things. Let’s get down to business."

"Billy, you also know the scale of our refinery is not small, if you can manage it, what price would you be willing to offer..."

Billy: "..."

Following their negotiations, Altehoffen finally decided to sell the refinery to the Nobel family at a price far below market value.

In theory, the Nobel family seemed to have gained a great advantage, but in reality, East Africa’s investment in this factory had long been recouped over the years, earning a fortune during the war.

Now they can let go of this hot potato before any policy changes in Russia, winning once more.

Billy also felt quite satisfied with this transaction; acquiring Bela Chemical and Petroleum Refinery would significantly increase the Nobel family’s refined oil output. With no sign of the European war ending anytime soon, as long as they use their own channels to re-sell this oil to countries like Germany and Austria-Hungary, they will make another fortune.