PetroChina, the largest listed company in China, announced its expansion plans. According to the Financial Times on Thursday, the company plans to buy out its half in a joint venture with China National Petroleum Corporation (CNPC) and has committed to replace every barrel of oil it sells and triple its gas reserves over the next 5 to 8 years.
This is an ambitious plan, to say the least. Its CNPC acquisition will mean that PetroChina will hold major stakes in Kazakhstan, Venezuela, Algeria, Niger and Chad. This is in addition to its holdings in the Sudan and elsewhere.
While growth is on the horizon, its impact on the world is an open question. The company has developed a reputation for ignoring concerns by human rights activists and institutional investors about its activities in support of the repressive regime in the Sudan. Despite considerable pressure, there is no indication that PetroChina intends to change its ways.
As we have seen with many Chinese-based companies, human rights problems pose no serious concerns to their business operations. While Western-based firms shy away from human rights hot spots, PetroChina and other Chinese-based companies see the opportunity and seize it. Thus, with growth on the horizon, we can expect to see greater funding for repressive regimes and those in power in the poorist parts of the world while many additional people around the globe suffer from exploitation and strife.
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