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(Reuters) - The Chinese government is investigating the former head of

PetroChina's (0857.HK) Indonesian operations, sources said, just weeks after


authorities announced a corruption investigation into other former senior
executives at the state oil giant.

PetroChina removed Wei Zhigang from his post as general manager of its
Indonesian unit several weeks ago amid an unspecified official probe into the
executive, three Chinese oil industry sources familiar with the matter told
Reuters.

Company spokesman Mao Zefeng said he was not aware of any investigation into
Wei, who could not be reached for comment.

PetroChina and its parent firm, China National Petroleum Corp (CNPC), are at the
center of one of the biggest corruption investigations into the Chinese state
sector in years. Until now, no executives from PetroChina's foreign operations
have been implicated.

"The former general manager of the Indonesian business is under investigation,"


said one source, who spoke on condition of anonymity due to the sensitivity of
the matter. "He has already been removed from the general manager position."

A second source added: "Wei has been removed from his job and his
replacement has been sent to Indonesia."

The new country general manager is Xue Liangqing, formerly a chief geologist at
PetroChina's international exploration and production unit, the three sources
said.

Asked to comment, Indonesia's energy regulator SKKMigas said Wei had to leave
because his visa had been extended too many times for someone in that role in
the country's oil sector.

Spokesman Elan Biantoro said the regulator was aware PetroChina had appointed
Xue as its new general manager for Indonesia.

A corporate communications manager at PetroChina's Indonesian unit in Jakarta


said she could not provide immediate comment.

SKKMigas has been rocked by its own corruption scandal, with a recent
investigation into its former chief.

WIDESPREAD INVESTIGATION

Beijing stunned the Chinese energy industry in late August and early September
with announcements that five former top executives at PetroChina (601857.SS)
(PTR.N) and CNPC were being investigated for "serious discipline violations",
shorthand generally used to describe graft.

The executives included Jiang Jiemin, former chairman of both entities, and Wang
Yongchun, who was vice president of CNPC in charge of China's largest oil field of
Daqing in the country's northeast.
Authorities have given no further details on the alleged wrongdoing of the five,
but the investigations suggest President Xi Jinping wants to tackle graft in an
industry that ranks as one of the most powerful corners of China's state-owned
corporate sector.

None of the former executives have been reachable or seen in public since the
announcements. Top executives at several PetroChina suppliers have also been
implicated.

PetroChina's operations span the globe, from oil production facilities and
pipelines to refineries and petrochemical projects. Its market capitalization of
about $235 billion makes it one of the world's most valuable oil firms.

Wei, an industry veteran, took over as head of PetroChina's Indonesia operations


in 2004, according to PetroChina.

The unit, with nearly 3,500 employees, has increased crude oil output
significantly since its incorporation in 2002, when PetroChina bought U.S. oil firm
Devon Energy's (DVN.N) assets in Southeast Asia's biggest economy.

PetroChina's output in Indonesia was 5.67 million metric tons in 2011, roughly
triple its 2002 level, making it the seventh largest producer in the country.

PetroChina attributed the surge in part to expertise from CNPC's oil service units,
including CNPC Daqing Drilling Engineering Co, in extracting oil from mature
fields, experience accumulated from decades operating ageing fields at home.

Last month, Reuters reported that PetroChina had tightened control over its
managers and stepped up safety inspections to ensure the "shock" from the
corruption scandal doesn't disrupt its global operations.

Controls were also tightened in case directors tried to flee China or were needed
as part of the investigation, which has sparked shock and confusion inside
PetroChina, a company with 550,000 employees and 320,000 contractors.

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