Trafigura's China oil marketer released on bail - sources

By Chen Aizhu

BEIJING (Reuters) - An oil marketing executive of Swiss trading giant Trafigura's China operation was released on bail this month after more than two years in detention, as an investigation into alleged fraudulent oil trading continues, sources with knowledge of the matter said.

Tian Meng, Trafigura's Beijing-based oil marketer, has not been officially charged, the sources said. Trafigura declined comment.

Investigators in the city of Cangzhou detained Tian last August after private Chinese trader Qingdao United Energy filed a complaint to police, alleging it had lost $32 million (24.24 million pounds) via trade financing deals arranged without its knowledge between Tian and local trader Zhang Wei.

"Tian was released on bail early in August ... the investigation is still under way," said one source who was briefed by the authorities in northern Chinese city of Cangzhou, where Tian had been held.

Senior sources at Trafigura have repeatedly said the company believes the dispute is a commercial one and is not a matter for police or state prosecutors.

In June last year, the police also detained Li Bo, the head of Trafigura's Beijing office. He was released on bail in February.

Nevertheless, Trafigura has expanded its oil business since late last year after Beijing allowed a small group of independent refineries to import crude for the first time.

The Swiss merchant was among the more aggressive suppliers, extending credit periods for independents, also known as "teapots", to boost sales into the country.

(Additional reporting by Dmitry Zhdannikov in London; editing by Susan Thomas)