China oil tycoon held in 127 mln dollar graft probe -media

BEIJING, Dec 26 (Reuters) A Chinese oil tycoon has been detained on suspicion of embezzling 1 billion yuan (127.9 million dollar) of private and government funds, media reported today.

Gong Jialong, chairman of the Tianfa Group, owner of listed Tianfa Petroleum Co, was detained on December 21, the Beijing News said.

Gong is the chairman of the China Chamber of Commerce for Petroleum Industry from which he is suspected of embezzling the funds, the newspaper said.

No charges had been laid, it said.

Company officials were not immediately available for comment.

China is in the middle of a crackdown on corruption, which the ruling Communist Party says is so widespread it could threaten the party's credibility and even survival.

Hong Kong's Beijing-funded Ta Kung Pao newspaper said Gong was taken into police custody on the recommendation of the China Securities Regulatory Commission.

Tianfa Petroleum shares have fallen about 27 per cent since the end of September even as larger rivals such as Sinopec Corp have soared amid high oil prices.

Sinopec shares have risen about 39 per cent over the same period.

Tianfa Petroleum deals in liquefied gas, chemicals and other petroleum products as well as agricultural products.

Reuters DKA GC0939