Private oil wells seized in Shaanxi

Oil well investors and derrick workers in the northern part of Shaanxi province have clashed with
police at the confiscation with-out compensation by local authorities of as many as 6.000
small. privately-owned oil wells in the area. The Financial Times said. A lobbyist
representing the private oil compa-nies told the newspaper that total investment in the
confiscated wells was around Yn10bn and that they were taking their case to the central
government.
Although Beijing has not expressly permitted the establishment of
private oil companics. the drilling of wells by private entrepreneurs in Shaanxi was
authorised by con-tracts signed by local governments. Local officials have justified the
confiscations by citing a secret edict ordering a halt to private oil extraction. The companies
replied that they would not be expected to obey a secret edict and have taken their ease to
the central government to appeal for equal treatment for private enterprises.