China National Offshore Oil Corporation (CNOOC) former chairman under investigation
Former chairman and party secretary of China National Offshore Oil Corporation (CNOOC), Qi Meisheng, is under investigation for serious violation of laws and discipline. Qi has a longstanding history with CNOOC, having served as CEO, executive director, and chairman for nearly 30 years. This marks the fourth instance of senior or middle-level management in CNOOC being investigated this year.
Qi joined CNOOC Group in 2023 as its party secretary and chairman, and also held the position of CNOOC's deputy chief economist. He was previously the general manager of CNOOC's Shenzhen branch. A recent article about Qi on CNOOC Group's official Weibo account, detailing his work visit to the Hainan branch, has been deleted. CNOOC Group, which oversees CNOOC's natural gas and power generation businesses, is a wholly-owned subsidiary of CNOOC.
Key Takeaways
- Qi Meisheng, former chairman of CNOOC, is under investigation for serious violations of laws and regulations.
- Qi recently joined CNOOC's subsidiary, China National Offshore Oil & Gas Exploration and Development Company, as party secretary and chairman.
- At least four senior managers in CNOOC have been investigated this year.
- Qi's investigation follows the retirement of two other CNOOC executives just three months prior.
- Qi served as general manager of CNOOC's Shenzhen branch until July 2023.
- An article about Qi's work at the Hainan branch was published on CNOOC Group's official Weibo account in January 2024 but has since been deleted.
Analysis
The investigation of former CNOOC chairman Qi Meisheng for legal violations signifies a crackdown on corruption within CNOOC, likely prompted by new leadership or policy changes. This scrutiny may impact other Chinese energy firms, influencing their operations and investor confidence. Short-term disruptions in CNOOC's management and projects could occur, with potential long-term effects including stricter regulations, management reshuffling, and a potential slowdown in China's offshore energy expansion. Financial instruments associated with CNOOC, such as stocks and bonds, may also face volatility due to uncertainty.
Did You Know?
- CNOOC (China National Offshore Oil Corporation): CNOOC is a Chinese state-owned oil and gas company, and one of the largest globally. It specializes in the exploration, development, production, and sales of crude oil and natural gas. In 2021, CNOOC ranked as the fifth-largest oil company in the world by production.
- Party secretary: In Chinese state-owned enterprises like CNOOC, the party secretary, a high-level position, oversees the party's activities within the organization. This individual often wields substantial influence over the company's decision-making and is typically part of the senior management team.
- Wholly-owned subsidiary: This entity refers to a company in which another company owns 100% of the shares. China National Offshore Oil & Gas Exploration and Development Company is a wholly-owned subsidiary of CNOOC, granting CNOOC complete control over its operations and decision-making.