1. Comprehension

Only one of the four possibilities is true. Underline the sentence you think is correct:

a 1) There is plenty of oil available.

2) Armenia is going to have problems getting oil.

3) There have been recent political problems in Armenia.

4) Political problems in the Middle East mean that Armenia will get more oil.

b 1) There is a state of emergency in Armenia.

2) There may be a state of emergency in Armenia.

3) There will be a state of emergency in Armenia.

4) There has been a state of emergency in Armenia.

c Armenia will probably have to pay:

1. $50 per barrel for oil.

2. $60

3. $100

4. $20

e Robin Snow thinks:

1. Onasti will sell oil to Armenia at $50 per barrel.

2. Onasti will not sell oil to Armenia at all.

3. Onasti will sell oil to Armenia at $100 per barrel.

4. Onasti will go to the emergency Cabinet meeting.

2. Fill in the missing words.

a Political problems in the Middle East are _____ the supply of oil to Armenia.

b The oil crisis will ____ to a state of emergency in Armenia.

c We are hoping to make a contract that will _____ us with oil.

d Mr. Armen Augonesyan is extremely ______ when he says that Onasti will sell oil to Armenia at the old price.

3. Discussion

Make a list of as many points as you can remember from the news report. Number these points in order of importance. Discuss your order with the class.

4. It is often necessary to use “if” sentences when negotiating. Match the two parts of each sentence together. Pay attention to grammar and sense.

If you don’t accept our price…	we will agree to sell you some oil
If you agree to a reduction in taxes…	we’d lose millions of dollars
If you sell us 5m barrels…	Armenia is going to have trouble getting oil
If the oil doesn’t come on time…	we’d be prepared to sell you more oil
If we couldn’t use the airport…	we’ll sell the oil to other countries
If the oil crisis continues	we won’t sell you any oil at all
If we don’t get a better price…	we’ll reduce your airport taxes
If you made us a better offer…	we want a reduction in airport taxes
If you stop our planes landing…	we won’t have enough for our essential services
If we sell you any oil at all…	we’ll lose a lot of money

Brief for negotiating

You are: Mohammed Kaftar. Because of the new oil crisis in the Middle East, you have had offers of up to $120 per barrel from other countries. You therefore want to sell the oil at these higher prices. You do not have a contract with Armenian government, so there is no reason why you should sell them any oil at all. However, it is very important to keep on good terms with the Armenian government. Onasti’s airline is far more important than a few barrels of oil. Also, the capital city airport is essential to the airline. If he could not use it, Onasti would lose over $100m a year in revenue. You are therefore going to another meeting with Victor Kane of the Armenian government.

Your position, basically, is:

1. You want to sell the Armenian people as little oil as possible. You may have to sell them some, however, in order to keep on good terms with the government. Decide how much you are going to let them have.

2. You want as high a price as possible for any oil you sell. It is unlikely that they will offer you the &120 per barrel that other countries are offering. Decide how much you are going to ask for the oil.

3. You still want a reduction in taxes if you sell the ARMENIAN people any oil at all. Try to get as big a reduction as possible.

4. Don’t forget. You cannot afford to lose the friendship of the Armenian government. You also cannot afford to lose any business for Onasti Airlines.

You will have to negotiate on all these points. You want to make as much money as possible from the oil. You also have to think about Onasti Airlines. You will therefore have to be very careful about what you say. Get together again with Victor Kane, the Armenian government Secretary, and try to make a deal.