Mystery of China Energy giant that came from nowhere deepens

SINGAPORE (Mar 8): CEFC China Energy Co.’s rapid ascent was shrouded in mystery and the turmoil that’s engulfed the company over the past week is no different.

Just six months ago, CEFC called itself China’s largest private oil and gas company, with 50,000 employees and revenue of more than US$40 billion ($52.6 billion). That’s when it agreed to buy a US$9 billion stake in Russian state energy giant Rosneft PJSC following a series of deals elsewhere -- a spree that spawned speculation over how the previously obscure firm managed to make its mark on the international stage so quickly.

Now, it’s being hit by a slew of bad news. Chairman Ye Jianming is said to have been investigated by authorities, it’s reported to have been taken over by an arm of the Shanghai government and the company’s bonds have posted record declines. All that’s raised questions about the status of the Rosneft deal, which is yet to close. CEFC is also said to have missed paying US$63 million for an oil-trading joint venture.

---

Related Stories

• DBS and OCBC lower respective target prices for CLCT but still deem a 'buy'
• Sasseur REIT’s Cecilia Tan: Consumption downgrade benefits us
• Jack Ma buys Alibaba stock to show support for struggling empire

---