Mr. Buffett points out that only PetroChina’s parent company, China National Petroleum Company (CNPC), operates in Sudan. Since subsidiaries generally do not have control over parent company operations, Mr. Buffett argues that targeting PetroChina for CNPC’s transgressions is misguided. But PetroChina and CNPC are two faces of the same entity. The management of the two overlaps: The president of CNPC is the president of PetroChina, and the CFO of CNPC is PetroChina’s CFO as well..
Mr. Buffett states that the real problem in Sudan is with China, not CNPC and PetroChina. But China’s interests in Sudan are represented almost entirely by CNPC/PetroChina, which exports between 50% and 80% of Sudan’s oil to mainland China. [Full text]
See also Mia Farrow’s previous WSJ op-ed on Darfur and the Beijing Olympics.