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China oil and gas tycoons run for cover

The bribery and corruption scandal surrounding the China National Petroleum Corporation (CNPC) is spreading across China’s oil and gas industry, forcing executives there to deny involvement in the graft alleged at the top levels of the industry.

Jiang Jiemin, head of the State-owned Assets Supervision and Administration Commission (SASAC) and the former chairman of CNPC, was fired and placed under disciplinary investigation shortly after the announcement of a corruption probe into four CNPC senior managers late last month.

Hua Bangsong, chairman of Wison Engineering Services Co, is said to be assisting authorities in the bribery investigation.

Wison was awarded oil refining contracts by CNPC’s subsidiary PetroChina.

Some of Wison’s senior executives used to work in PetroChina or its subsidiaries, local media reported.
The company has denied any wrongdoings in relation with CNPC.

Trading of Wison’s stock in China was suspended on September 2 and no date has been announced for trading to resume.

Another PetroChina’s supplier, Sichuan Star Cable Co., Ltd, said it’s been unable to contact general manager Shen Ludong and finance director Yang Ping, following the investigation of the company’s chairman Li Guangyuan in July.

Sales to PetroChina generated half of Sichuan Star Cable’s revenue. The chairman Li was reported to be a close associate of detained former Sichuan vice-governor Guo Yongxiang, a veteran oil official and ex-colleague of CNPC’s Jiang.

Source: Oil Patch Asia