179.5 million tons! The State Council investigates PetroChina's resale of imported crude oil

According to a report by Xinhua Net on January 19, promoting all kinds of enterprises to operate in strict accordance with laws and regulations and strictly implementing the state's macroeconomic regulation and control and industrial policies is an important foundation for creating a market-oriented, law-based, and international business environment, and an important part of improving the socialist market economic system. In accordance with the relevant laws, regulations and policy documents of the state, the recent audit of the National Audit Office found that the fuel oil company under China National Petroleum Corporation (hereinafter referred to as the fuel oil company) had the problem of reselling imported crude oil, and in accordance with the deployment of the Party Central Committee and the State Council, the joint investigation team of the State Council carried out verification and investigation in accordance with laws and regulations, objective and fair, and seeking truth from facts.

After verification and investigation, in June 2006, the fuel oil company sold 400,000 tons of imported crude oil to Shandong Binhua Group in the name of "blended fuel oil", which led to the resale of imported crude oil by PetroChina. Over the years, PetroChina has sold a total of 179.5 million tons of imported crude oil to 115 refining enterprises, during which the main leaders of CNPC have seriously derelicted their duties. PetroChina's resale of imported crude oil violates the "Administrative Licensing Law" and other laws and regulations and the relevant regulations on the management of crude oil products, seriously violates the national industrial policy, seriously disrupts the order of the oil market, encourages the blind development of backward production capacity of refining enterprises in violation of regulations, encourages some local refining projects to be approved in violation of regulations, undermines the market environment for fair competition, indirectly causes the loss of state finance and taxation, and seriously corrupts the party style and social atmosphere.

After the Central Discipline Inspection Commission and the State Supervision Commission have seriously investigated the dereliction of duty and dereliction of duty of relevant party organizations and party-member leading cadres, the party group of PetroChina bears the main responsibility, the fuel oil company bears direct responsibility, and the relevant functional departments of PetroChina bear the responsibility of supervision. The relevant leading cadres, functional departments and relevant responsible comrades of the fuel oil company of CNPC have not correctly performed their duties and responsibilities and bear corresponding responsibilities. In accordance with the decision of the CPC Central Committee and the State Council, the relevant departments have seriously dealt with the problem of PetroChina's resale of imported crude oil in accordance with laws and regulations, discipline and law, and have recovered the illegal profits from PetroChina's resale of imported crude oil.

All localities, all relevant departments, and all central enterprises should profoundly study and comprehend the important significance of the party Central Committee and the State Council in seriously investigating and handling the issue of PetroChina's resale of imported crude oil, enhance the "four consciousnesses," strengthen the "four self-confidences," achieve "two safeguards," earnestly strengthen the party's leadership over state-owned enterprises, promote all kinds of enterprises to operate in accordance with laws and regulations, create a business environment of fair competition, and promote the improvement of the socialist market economic system.

According to the "Securities Times E Company" reported on January 20, PetroChina (601857) announced on the morning of January 20, noting that some media reported on PetroChina Fuel Oil Company on January 19, 2022. PetroChina Fuel Oil Co., Ltd. is a wholly-owned subsidiary of the Company. The National Audit Office found irregularities in the company's crude oil trading in routine audits. The company has always actively cooperated with the investigation, carefully verified the company's internal control system, improved the company's crude oil trade related systems, and completed the rectification of relevant problems. At present, the company's production and operation have not been affected.