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position:cippe > Home > News > Industrial News >

China Oil Boss Ordered Out

Pubdate:2012-02-24 10:11 Source:thestandard.com.hk Click:209 times

South Sudan has expelled the Chinese head of the country's largest oil firm on charges of colluding with former civil war foe Sudan to "steal" millions of barrels of its oil.

Liu Yingcai was asked to leave the world's newest nation.

Minister of Information Barnaba Marial Benjamin said the decision to fire the head of the China-Malaysia-owned company, Petrodar, follows an investigation into millions of barrels of oil that South Sudan claims Khartoum stole.

Last month South Sudan vowed to halt oil production of around 350,000 barrels per day until Sudan repaid 2.4 million barrels of southern crude it confiscated from pipelines running through the north to its Red Sea port.

South Sudan split from the north last year but while it has most of the oil, Khartoum controls the pipeline and has access to the sea, sparking a furious argument and fears of renewed conflict.

South Sudan has accused oil firms operating on its territory of underreporting the number of oil wells, and aiding the north's confiscation of crude.

Petrodar has previously rejected such accusations.

Before the shutdown, China relied on South Sudan for nearly 5percent of its oil, and was seen as an important player in persuading both sides to come to an agreement.

Beijing is also an important ally of the Khartoum government.

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