109: Chapter 109: Arms Deal Exceeding $30 Billion Reached
Major General Faye paused for a moment and continued.
"We are also purchasing 1,000 sets of Tianlei Type I Anti-Aircraft Missile, plus 3,000 supporting missiles; 1,000 sets of Tianlei Type II Anti-Aircraft Missile, plus 3,000 supporting missiles; 500 sets of Tianlei Type III Anti-Aircraft Missile, plus 1,500 supporting missiles; 300 sets of Tianlei Type IV Anti-Aircraft Missile, plus 800 supporting missiles; 100 sets of Tianlei Type V Anti-Aircraft Missile, plus 200 supporting missiles; 100 sets of Tianlei Type VI Anti-Aircraft Missile, plus 200 supporting missiles; 50 sets of Tianlei Type VII Anti-Aircraft Missile, plus 80 supporting missiles; and 30 sets of Tianlei Type VIII Anti-Aircraft Missile, plus 50 supporting missiles."
Li Yi listened carefully; it was indeed a rather large order. After a quick calculation, the total price reached $32.54 billion.
Among them, the total price for the Tianlei Series Anti-Aircraft Missile was $29.49 billion, the Tianlong Series UAV was $2.2 billion, and the Sky Arrow series anti-tank missile was $850 million.
Li Yi said to Major General Faye, "The total price for the weapons and equipment your side is purchasing this time is $32.54 billion. How do you plan to combine the payment?"
Major General Faye did not hesitate and said directly, "We will pay with 650 million barrels of oil, and pay the remaining balance in US dollars."
The current international oil price is $70.65 per barrel. Since the amount of oil paid reaches the standard of 500 million to 1 billion barrels, a 30% discount on the international oil price is applied, resulting in a price of $49.455 per barrel. The value of 650 million barrels of oil is $32.14575 billion.
After calculating, Li Yi said, "The value of 650 million barrels of oil is $32.14575 billion, and an additional $394.25 million needs to be paid. Is that correct?"
Major General Faye nodded and said, "That is correct. We plan to pay off the 650 million barrels of oil over half a year, with 100 million barrels paid each of the first five months, and 150 million barrels in the last month."
"That is acceptable." Li Yi knew that it was impossible for Saudi Arabia to come up with 650 million barrels of oil all at once, so paying in installments was not a problem at all.
"Then how does your side intend to deliver these weapons and equipment?" Major General Faye asked.
"We can complete the delivery in three batches: the first batch within one month, the second batch within three months, and the third batch within six months. Does Saudi Arabia have any requirements for the weapons and equipment to be delivered in each batch?"
Li Yi intended to arrange the delivery of the purchased weapons and equipment according to the pace of Saudi Arabia's oil payments. Delivering in three batches was just right.
"The first batch will include all the Sky Dragon Mark I UAVs and half of each of the Tianlei Type IV through VIII Anti-Aircraft Missiles. The second batch will include half of each of the Tianlei Type I through III Anti-Aircraft Missiles, as well as the remaining half of the Tianlei Type IV through VIII Anti-Aircraft Missiles. The third batch will include the remaining half of the Tianlei Type I through III Anti-Aircraft Missiles, as well as the Sky Arrow series anti-tank missiles."
Major General Faye felt that what Saudi Arabia lacked most right now were the Sky Dragon Mark I UAVs and the long-range Tianlei Type IV through VIII Anti-Aircraft Missiles, so delaying the delivery of the remaining weapons and equipment was perfectly fine.
"No problem. We will proceed with the delivery according to your requirements. The first batch of weapons and equipment will be delivered to you after you have paid the 100 million barrels of oil."
Li Yi only needed to purchase them from the Multiverse Arms Trading System and divide the weapons and equipment of each model into batches according to Major General Faye's requirements; naturally, there was not much else to consider.
"That is acceptable. We will raise the 100 million barrels of oil for payment as soon as possible. At that time, please arrange for oil tankers to transport it at Dammam Port."
As a port primarily serving the oil and gas industry in Saudi Arabia, Dammam Port is backed by the largest oil and gas production area in Saudi Arabia and has enough oil tank warehouses to meet the export and shipping needs of oil and natural gas.
"After you have raised enough oil, contact me to arrange transportation," Li Yi continued. "The weapons and equipment we export will all have designated usage areas. Among them, the usage area for the Tianlei Series Anti-Aircraft Missile is throughout Saudi Arabia, while the usage area for the Tianlong Series UAV and the Sky Arrow series anti-tank missiles covers the entire Persian Gulf region."
"There are restrictions on the usage area?" Major General Faye asked, puzzled.
"Yes, it is mainly to prevent these weapons and equipment from leaking out."
Major General Faye saw the firm look in Li Yi's eyes and thought for a moment. The weapons and equipment Saudi Arabia purchased were mainly for defending national security, so limiting them to use within Saudi Arabia had no impact.
"Can the usage area for the Tianlei Series Anti-Aircraft Missile be expanded to include Israel and Yemen?" Major General Faye considered the possibility of future conflicts with these two countries.
"We can add Israel as a usage area." Li Yi agreed to add one country.
"That works too." Major General Faye did not object; after all, Yemen did not have many fighter jets, so it did not have much of an impact.
As for the usage area for the Tianlong Series UAV and the Sky Arrow series anti-tank missiles, it had even less impact, as Saudi Arabia did not intend to use these weapons and equipment outside the Persian Gulf region anyway.
Li Yi and Major General Faye quickly drafted the arms trading contract for the purchased weapons and equipment. After both sides signed it, this contract exceeding $30 billion was considered finalized.
$30 billion was the largest order Li Yi had received in all this time. Saudi Arabia was truly a wealthy spendthrift, rich and capricious, without needing to worry about procurement funds.
Li Yi decided to squeeze a bit more out of Saudi Arabia. He said, "We currently have three other types of weapons and equipment available for sale: the Eagle Type III jet multi-role fighter, the War Tiger Type II jet bomber, and the Flying Fish Type I destroyer." Li Yi handed the information on these three models of weapons and equipment to Major General Faye.
Major General Faye took them and looked, then shook his head slightly. Compared to the most advanced fighter jets and destroyers currently available, there was a significant gap in combat performance. "Are these weapons and equipment not very practical?"
"Actually, you could use these fighter jets, bombers, and destroyers to fight pirates. The range is completely sufficient to cover the Persian Gulf region, and the pirates do not have any advanced equipment." Li Yi suggested.
"What is the price?" Major General Faye felt that the Flying Fish Type I destroyer was still usable; with a speed of 30 knots and a range of 4,800 nautical miles, it was more than enough for fighting pirates in the surrounding waters.
"One fighter jet, one bomber, and one destroyer, at a package price of 5 million barrels of oil. How about it? It is cheap, right?" Li Yi was prepared to dump a batch, totaling less than $250 million.
"Two fighter jets, two bombers, and one destroyer. We will pay 5 million barrels of oil for them." Major General Faye decided.
"Deal." Li Yi did not hesitate and immediately agreed.
Subsequently, Li Yi and Major General Faye agreed that this batch of weapons and equipment would be delivered in the first batch, and Saudi Arabia would pay 5 million barrels of oil in the first month.
Seeing that he had sold fighter jets, bombers, and destroyers for the first time, Li Yi was very happy to have made the sale, even if it was a clearance price.
He would wait to see the combat performance after Saudi Arabia used them before deciding whether to continue promoting these slightly outdated weapons and equipment.
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