The China National Petroleum Corporation (CNPC) is a Chinese state-owned fuel-producing corporation. It is China's largest integrated oil and gas company. As of 2006, it was the second largest company in the world in terms of number of employees. CNPC holds proved to be equivalent of reserves of 3.7 billion barrels of oil. CNPC spun off most of its domestic assets into a separate company called PetroChina, during a restructuring exercise. CNPC has 30 international exploration and production projects with operations in Azerbaijan, Canada, Indonesia, Myanmar, Oman, Peru, Sudan, Thailand, Turkmenistan, and Venezuela. It also made the successful historic acquisition of PetroKazakhstan (US$4.18 billion) on October 26th, 2005. CNPC has been present in Sudan since 1996 and now has oil and gas assets and interests in the country, while also providing oilfield services.
[...] Truth and ethics are also competing; as much as Responsibility and goodwill of the population Business Ethics Page 19 of 24 CASE SYNTHESIS Moral response the situation The moral response to the situation is the response that best aligns with those values will be to stop those unethical actions, abandon participation in the Sudanese army, invest more on populations (Education, healthcare, career development, etc) and get back to a normal business respectful of population, environment, with money going either to the company or to humanitarian causes. [...]
[...] Also the different opportunities that arise keep having an impact on thee situation. Key issue Issues here are dramatic. It is the lives of thousands of people against billions of dollar from oil business in Sudan. The long term cooperation and the alliance between countries is also an important issue. But the legitimacy of China National Petroleum Corporation will constitute our key issue here. From the company point of view, the key issue is: should we continue or should we stop those unethical activities? [...]
[...] Power is also important because China is a highly influent country and almost nobody wants to have bad relationship with China Business Ethics Page 16 of 24 From the company point of view, this would involve a lot of resources to stop giving money to Sudan because it will bring them to hostility and harder competition and probably a large loss of money. Key decision makers Decision makers here are the stakeholders, board of directors, maybe shareholders of CNPC and PetroChina and by extension people involved within the Chinese government if what is said in the report is true. [...]
[...] Associated risks, dangers, uncertainties, and/or opportunities Risks/dangers: Loss of human lives Image of the company Future of the company Integrity of the company Abandon of shareholders Denunciation Sanctions for the people involved Moral issues involved Irremediable actions Credibility of a whole Nation Uncertainty: Issue (Short, Medium & Long-term) People involved People knowing that Future of the Company 12 Page 13 of 24 Opportunities: Money Long term successful cooperation with Sudan Exclusivity in this territory Sustain an acceptable growth in this region Cooperation Sudan/China Money (again) Key stakeholders The key Stakeholders are those from CNPC but also those from PetroChina because they play a crucial role in CNPC investments in Sudan. [...]
[...] Sudan benefits from China involvement notably by the large investments in Khartoum, but also by the veto-power of China in the Security Council, which when it comes to proposal of sanction to Khartoum, is really helpful. Even the Council on Foreign Relations pointed that: “China comes to Africa with what one analyst has called the ‘complete package:' money, technical expertise, and the [ ] China has successfully prevented the UN Security Council from serious sanctions or other preventive measures in face of the alleged genocide and crimes against humanity perpetrated in the Darfur region of that country” Even worse U.N. [...]
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