Chiang Wei Company has responded to a report published by Radio Tamazuj on Tuesday as part of an investigation into entities involved in oil-backed loans and cargo allocations in South Sudan.
The report, titled South Sudan’s opaque oil allocations, sales, and captured revenues, described some companies as long-term beneficiaries of South Sudan’s crude oil allocations, saying they obtained crude below prevailing market prices and acted as speculators, middlemen and commission agents by purchasing oil cheaply and reselling it at higher prices for profit.
Chiang Wei, one of the companies mentioned in the report, issued a statement responding to the report, which is published here.
In the statement released on Friday, Chiang Wei LLC described itself as a wholly indigenous South Sudanese company that continued operating during periods of economic and political instability after international oil firms and creditors withdrew from the country.
The company said it underwent a leadership transition in 2021 and that its current management operates under “lawful commercial practice” while maintaining compliance standards consistent with international sanctions requirements.
Chiang Wei rejected several claims made in the report, including allegations relating to cargo reassignments and a reported $15 million arranger’s fee linked to a prepayment agreement.
The company denied involvement in the cargo reassignments cited in the report, saying the investigation had conflated the actions of separate entities.
It also denied receiving the reported $15 million arranger’s fee, saying no such payment had been made and that it maintained records supporting its position.
Chiang Wei defended its pricing arrangements, saying petroleum pricing was determined through a competitive tender process overseen by South Sudan’s Ministry of Petroleum. It said the report omitted details relating to discount pricing terms contained in published allocation documents.
The company added that its prepayment agreements fixed pricing formulas at the time contracts were negotiated and that the rates remained binding regardless of subsequent market movements, describing the practice as standard in petroleum trading.
Chiang Wei said the report contained what it described as “mischaracterizations of lawful commercial instruments.”
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