Dec 30, 2010 05:21 PM

CNOOC's Lesson in Local Customs


Handed his walking papers on October 14, Jiang Xizhao, the former president of Offshore Oil Engineering Co., a subsidiary of Chinese oil major China National Offshore Oil Company (CNOOC) was detained days later by the Chinese customs police. Several other executives from Offshore Oil Engineering were asked to assist in the investigation.

More than a month passed when executives from CNOOC officially acknowledged that an investigation was being conducted on the company by Tianjin Customs. In an official statement, the company said that the investigation involved the laws applicable to the reporting of foreign engineering ships entering and leaving China.

Behind the cautiously-worded announcement was a year-long shadow war between CNOOC and the General Administration of Customs (GAC), at the center of which was controversy over import duties on some offshore oil extraction equipment and the banding together and struggle over benefits by individual staff of the two organizations.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code