China downplays expulsion of Petrodar boss from South Sudan
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February 23, 2012 (KHARTOUM) – The Chinese government on Thursday
sought to downplay the decision taken this week by South Sudan to
expel Liu Yingcai, the head of the Chinese-Malaysian oil consortium
Petrodar.

South Sudan said it made this move because Yingcai did not honor the
terms of reference of the memorandum of understanding which they
signed in December.

The government accused Petrodar this month of lack of cooperation in
the implementation of Juba’s decision to shut down oil production and
negligence on the impact of oil operations on the environment.

South Sudan’s minister of information, Barnaba Benjamin Marial, said a
government investigation found Liu was involved with the government of
Sudan "in the conspiracy of getting the oil of South Sudan”.

Sudan decided late last year to start confiscating part of the oil
pumped by South Sudan as payment in kind to satisfy financial arrears.
This prompted Juba to retaliate by shutting down oil production.

China’s Foreign Ministry spokesman Hong Lei said China had seen the
reports of Yingcai’s expulsion but would not comment on it directly.

"China and South Sudan’s cooperation is based on mutual respect and
mutually beneficial equality, which brings real benefits to both
peoples," Lei told a daily news briefing.

"We hope that relevant sides step up communication and consultations
and put an end to misunderstandings to benefit long-term cooperation,"
he added.

Petrodar holds concessions in Palloj in Upper Nile state, where South
Sudan was producing over 60 percent of its crude oil before the
shutdown.

(ST)

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