The Secretive China Energy Giant That Faces Scrutiny

CEFC China Energy Co.’s rapid ascent was shrouded in mystery and speculation swirled that the company and its chairman, Ye Jianming, were connected to China’s military. The Chinese conglomerate’s deals, debt and management are now coming under increasing scrutiny. There are signs that CEFC is struggling to repay borrowings and reports that Ye has been investigated by authorities and stepped down from management of the company, which has been taken over by an arm of the Shanghai government.

When it agreed to buy a $9 billion stake in Russia’s Rosneft PJSC in September, CEFC said it was China’s largest private oil and gas company, with 50,000 employees and revenue of more than $40 billion. Since its founding in 2002, it has bought up stakes in sectors ranging from oil and petrochemical processing to financial services, apparel and even a soccer team in the Czech Republic. Its oil-trading portfolio includes a 4 percent stake in Abu Dhabi’s largest oil concession, awarded last year for an $888 million signing bonus, and a five-year supply deal with Rosneft.