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Corruption probe to boost energy sector reform

By DU JUAN and BAO CHANG | China Daily | Updated: 2013-09-26 08:41

Wang Yongchun, deputy general manager of CNPC; Li Hualin, vice-president of PetroChina, CNPC's listed unit; Ran Xinquan, vice-president of PetroChina; and Wang Daofu, PetroChina's chief geologist, are being investigated for suspected corruption by the CCDI.

"The series of corruption probes in CNPC may improve the energy companies' reform process and bring management changes,"said Lin Boqiang, director of the Xiamen-based China Center for Energy Economic Research.

He said it is usually a long-term process for energy companies in developing countries to become mature in their corporate management structure.

"In the short term, it will have a bad impact on CNPC in both its public image and its listed-company PetroChina's share price,"he said. "However, from a long-term perspective, the case will not bring too many changes to the company concerning its businesses.”

Unlike in private companies, the leader of an SOE is not the soul of the company, he said.

"In fact, it doesn't matter too much who in particular will become the head of an SOE, but stricter supervision and better management matter.”

The probes on Jiang, Wang, Li and others show the central government's determination and clear attitude to crack down on corruption, said Zhang Yi, vice-chairman at SASAC.

He said the investigations are individual problems and that the central government still acknowledges the achievements and contribution of CNPC.

"The most important task for CNPC is ensuring stable development, production and safety,"said Zhang.

On Sept 4 and 5, Zhang went to CNPC's two major oilfields — Daqing and Changqing — to hold meetings about oil exploration and production safety, to ensure the healthy and stable operation of the oilfields.

The Changqing oilfield is located in Shaanxi province, while the Daqing oilfield is in Heilongjiang province.

Changqing oilfield's annual output has soared from 10 million tons to 20 million tons from 2003 to 2007. In the last year, its oil equivalent output reached 45 million tons, exceeding Daqing oilfield where output was 43.3 million tons.

Wang Daofu and Ran Xinquan, both worked in the Daqing oilfield for years starting in 2003.

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