• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 5 hours US to Drown the World in Oil
  • 5 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 13 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 7 hours Iran Is Winning Big In The Middle East
  • 2 hours The Rarely Revealed Part of the Nuclear Problem
  • 5 hours With Global Warming Greenland is Prime Real Estate
  • 5 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 40 mins Used Thin Film Solar Panels at 15 Cents per Watt
  • 10 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 15 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours LA Solar Power/Storage Contract
  • 2 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 10 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
Electric Vehicles Will Win Big In A Recession

Electric Vehicles Will Win Big In A Recession

As the global automobile industry…

Aramco IPO Could Spell Disaster For Big Oil

Aramco IPO Could Spell Disaster For Big Oil

The Saudi Aramco IPO could…

Government Pressure Could Cancel CEFC-Rosneft Deal

Chinese Yuan

Beijing’s investigation into energy giant CEFC has significantly affected the acquisition deal for an almost 15-percent interest in Russia’s Rosneft, but the talks between the companies have not been cancelled, a company source told Bloomberg, adding that the investigation will lead to the layoffs of up to half of the company’s 30,000-strong staff.

The private Chinese company last year agreed 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.

The tables turned earlier this year, when the authorities launched an investigation into the company’s management, and more specifically its head, Ye Jianming, who has since stepped down. The investigation is reportedly part of a wide crackdown on illicit business practices that earlier cost the top man of a leading insurance company his job.

Now, according to the source, CEFC has begun looking into divestments, picking its real estate business and a brokerage first. Chinese Citic Group has already agreed to buy a 49-percent stake in CEFC’s European operations and there is a possibility that Citic will also snap CEFC’s oil operations in the UAE. If the pressure continues, the Rosneft deal might fall through eventually, despite the evident willingness of the sides to see it through.

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