Gabon makes rare challenge to China over oil practices

Gabon has taken the exceptional step of withdrawing the right of Addax Petroleum, a subsidiary of Chinese oil giant Sinopec, to exploit an oilfield, raising concerns over possible repercussions on the business climate.

Production at the southwestern Obangue oilfield, totalling 9,000 barrels per day, has been transferred since the end of last year from Addax to the new state-run Gabon Oil Company (GOC), set up in 2011.

Officially, the Chinese firm is being sanctioned for failing to meet “contractual obligations”.

via Business feed http://www.scmp.com/business/commodities/article/1278683/gabon-makes-rare-challenge-china-over-oil-practices