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PetroChina Fuel Oil in illegal imported crude oil sale to 115 Chinese refineries

21 Jan 2022

The following article published by Manifold Times on 21 January was sourced from China’s domestic market through a local correspondent. An online translation service was used in the production of the current editorial piece:

China’s National Audit Office (NAO) has recently found PetroChina Fuel Oil, a subsidiary of state-owned China National Petroleum Corporation (CNPC), to be involved in the illegal reselling of imported crude oil, according to a statement from China’s National Development and Reform Commission (NDRC) quoting information from Xinhua News Agency.

Investigations confirmed PetroChina Fuel Oil selling 400,000 metric tonnes (mt) of imported crude oil to Shandong Binhua Group in the name of “blended fuel oil” in 2006.

Over the years, PetroChina Fuel Oil sold a total of 179.5 million mt of imported crude oil to 115 local refining companies.

“During this period, the main leaders of PetroChina were seriously negligent in their duties,” stated NDRC.

“PetroChina’s reselling of imported crude oil violates the Administrative Licensing Law and other laws and regulations and relevant regulations on the management of crude oil and refined products, seriously violates the national industrial policy, seriously disrupts the oil market order, encourages the blind development of outdated production capacity of illegal refining enterprises, and encourages illegal trading.

“[The development] has damaged the market environment of fair competition, indirectly caused the loss of national fiscal revenue, and seriously damaged the party and social atmosphere.”

An investigation by the Central Commission for Discipline Inspection and the State Supervision Commission on CNPC found departments and relevant employees of PetroChina Fuel Oil failing to perform their duties properly and as such bear corresponding responsibilities.

The relevant departments have been seriously dealt with, and Chinese authorities have recovered the profits made by PetroChina from reselling imported crude oil as “blended fuel oil”.

“All regions, relevant departments, and central enterprises should thoroughly study and understand the significance of the CPC Central Committee and the State Council’s serious investigation and handling of the issue of CNPC’s reselling of imported crude oil,” noted the Chinese authority.

It encouraged all types of enterprises in China to operate in accordance with laws and regulations to create a business environment for fair competition to promote the improvement of the socialist market economic system.

 

Photo credit: Patrick Hendry on Unsplash
Published: 21 January, 2022

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