• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 50 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 1 hour So You Think We’re Reducing Fossil Fuel? — Think Again
  • 14 mins How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 5 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 48 mins Renewables provided only about 4% of total global energy needs in 2018
  • 5 hours N.Y. Governor Signs Climate Bill
  • 9 mins Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 15 hours Shale Oil will it self destruct?
  • 4 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 3 hours Today in Energy
  • 6 mins Which is a better domain name for OAPEC?
Russian Crude Could Still Be Dirty By Mid-2020

Russian Crude Could Still Be Dirty By Mid-2020

Polish refiner PKN Orlen has…

The Only OPEC Member That Could Challenge Saudi Oil Dominance

The Only OPEC Member That Could Challenge Saudi Oil Dominance

Iraq, OPEC’s second biggest producer,…

CEFC China Energy Chief Probed For Economic Crimes

CEFC

Chinese authorities are investigating the chief executive of CEFC China Energy, Ye Jianming, on suspicion of economic crimes, an unnamed source told Reuters. The information also appeared in Chinese magazine Caixin.

CEFC last year struck a deal to buy a 14.16-percent interest in Russia’s Rosneft for more than US$9 billion. At the time, the news raised quite a few eyebrows as the more logical candidate for a hefty stake in such a large company would be a state oil and gas player.

Yet CEFC, it appeared, had Beijing’s favor. The company is the largest private energy business in China and has been investing heavily both at home and abroad, including projects in Central Asia, Eastern Europe, and the Middle East. At home, the company has been buying and building oil storage capacity. CEFC has even been entrusted with storing part of China’s strategic petroleum reserve. Besides its energy business, CEFC is also active in financial services and online insurance.

Could this favor now be taken away? There is always such a possibility. The questioning of Ye Jianming could be part of a wider crackdown on illicit business practices that earlier this year saw the state take control of insurance company Anbang, which Reuters’ Clara Ferreira-Marques called “recklessly ambitious.”

Related: Shale Drillers Are Supersizing Fracking

Nobody seems certain how things will develop and nobody has any certainty that a company that is today close to the government won’t attract regulator’s attention tomorrow. This seems to be the general sentiment among foreign investors with interests in China as President Xi Jinping consolidates his power. The message of the crackdown is clear: business must be kept in line, and this is apparently valid regardless of how well connected certain companies are in the state.

Two entities that should be particularly worried about the reported probe of CEFC’s boss are Glencore and the Qatar Investment Authority: they were the ones that agreed to sell their Rosneft stake to CEFC, and the deal has not yet been completed.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play