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Oil Investors Tapped Out Of Wells
Ma Changchun sank his life savings into a risky private oil venture in the high desert of China's Xinjiang Province.
(Peter S. Goodman - Twp)
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In April 2003, two Toyota Land Cruisers had arrived, bearing officials from the giant state oil firm. According to Zheng, the leader of the party asserted claims over the wells. "He said, 'This is my personal asset,' " Zheng recalled. "He was extremely angry, rude and unpleasant. He vowed that he would put us out of business."
Zheng thought the local government would protect them. "Here, it's all about personal relationships," he said. "We pay our taxes. Why would they want us to stop?"
But the Tarim Oil Field Authority -- a local CNPC subsidiary -- soon filed a report with Xinjiang provincial authorities declaring that the venture had exceeded its rights to collect oil, according to investors. In late 2003, after an investigation, Kuche authorities ordered a shutdown. The venture pulled strings with local officials to resume less than a month later, but when CNPC found out the following year, another shutdown was imposed.
As the cat-and-mouse game continued, central government officials flew to Kuche in October 2004 to meet with local leaders and the private investors. They returned to Beijing without issuing a judgment. This May, working teams returned to Kuche for further investigation.
Summer brought a decision: a July 29 document signed by 10 central government ministries. "The oil wells and land ownership should be returned from the unqualified enterprises," the state decreed -- seemingly a victory for CNPC. But the private investors, hoping for more time, are focusing on the section of the ruling that addresses the sensitivity of the involvement of ethnic minorities in the project: "In order to maintain unity among different minority groups and preserve regional stability, the parties should negotiate with CNPC fully and seriously."
So far, no talks have been scheduled. At the oil field, the pumps still groan, depositing a trickle into pools carved into the desert floor.
Special correspondent Eva Woo contributed to this report.
