Cefc Intl's Singapore Oil Trading Team Quits: sources

AnAn International

11/07/2016 09:05

By Chen Aizhu and Florence Tan 
    BEIJING/SINGAPORE, July 11 (Reuters) - Singapore-listed CEFC 
International's  CEFC.SI  oil trading team resigned over the 
weekend, three sources with direct knowledge of the matter said. 
    The Singapore-based team, including the company's vice 
president of trading Liu Lei and six members Liu hired over the 
past six months, decided to quit because of an "internal policy 
shift" by the company, one of the sources said. 
    CEFC International, which is involved in petroleum trading 
and investment in oil and gas assets, expanded its oil trading 
team after hiring Liu, formerly deputy head of global products 
trading with PetroChina  0857.HK , in early 2015. 
    The trading team had expected to concentrate on oil trading, 
but had been instructed to switch its focus to merger and 
acquisition opportunities in oil assets, as well as serving as a 
fuel procurement base for Shanghai-based company CEFC China 
Energy, the same source said.  
    Zang Jianjun, the chairman of CEFC International, is an 
executive director of privately held CEFC China, although the 
two companies are independent legal entities, a CEFC China 
official told Reuters. 
    "There seems to be a lack of coordination internally between 
the top management," the source said, declining to be identified 
due to the sensitivity of the matter.  
    Two of the sources said the Singapore team, including three 
senior traders of crude oil and fuel oil, one derivatives 
trader, a trading assistant and a market analyst, were "looking 
for new options."  They declined to elaborate. 
    Liu declined to comment.  
    Dave Tan, CEFC International's investment relation manager, 
did not immediately respond to requests for comment.   
    CEFC China Energy has been expanding its oil business in 
recent years, agreeing in 2015 to take control of the 
international arm of Kazakhstan's state oil and gas firm and 
launching a major oil storage base in China.  urn:newsml:reuters.com:*:nL3N18M1EP 
    Over the past two years, the firm has brought on board 
nearly a dozen senior and retired executives from Chinese state 
energy giants.  
    Top hires include Cui Zhenchu, formerly head of crude oil 
trading with state refiner Sinopec Corp  0386.HK , Liu Zhongqiu, 
previously vice president of PetroChina trading vehicle 
Chinaoil, and Zhang Xin, an expert in oil and gas talks with 
Russia formerly with CNPC.  
    The Singapore Exchange (SGX) last year urged investors and 
shareholders to be cautious in dealing with CEFC International's 
shares, noting stock buying had been concentrated in a small 
number of offshore accounts.  urn:newsml:reuters.com:*:nWNBS0179G 
    CEFC International reported a loss of $758,000 in the first 
quarter of 2016 versus a $1.207 million loss in the same period 
a year ago, according to a release on its website. 
    Shares in CEFC International have nearly halved in value so 
far this year after vaulting higher in 2015. The stock last 
traded at S$0.205 on July 7. 
    
 
 (Additional reporting by Roslan Khasawneh in Singapore; Editing 
by Richard Pullin) 
 ((aizhu.chen@thomsonreuters.com; +8610 66271211; Reuters 
Messaging: aizhu.chen.reuters.com@reuters.net)) 
 
Keywords: SINGAPORE OIL/CEFC INTL