On July 27, 2026, two senior executives from CNOOC were investigated simultaneously, marking a continued and extensive purge of Zeng Qinghong's power base that has lasted for many years. (Composite image from Dajiyuan)
[People News] On July 27, 2026, Jin Xiaojian, the former chairman of CNOOC's Offshore Oil Engineering, and Wang Mingyang, the vice president, were both investigated on the same day. CNOOC is known as the power base of former Politburo Standing Committee member Zeng Qinghong. Over the past two years, nearly 20 senior executives from CNOOC have been dismissed, including former chairman Wang Yilin, former general manager Li Yong, and former vice general manager Yuan Guangyu.
The official website states that Offshore Oil Engineering Co., Ltd. is a publicly listed company controlled by China National Offshore Oil Corporation (CNOOC). It is the only large-scale engineering contractor in mainland China that integrates marine oil and gas development engineering design, procurement, construction, offshore installation, commissioning, maintenance, as well as liquefied natural gas, offshore wind power, and refining projects. It is also one of the largest and most capable marine oil and gas engineering contractors in the Asia-Pacific region, having been listed on the Shanghai Stock Exchange in February 2002.
China National Offshore Oil Corporation (CNOOC) is a major state-owned enterprise established with the approval of the State Council of the Communist Party of China on February 15, 1982. It is the largest offshore oil and gas production operator in China and is often referred to alongside PetroChina and Sinopec as one of the 'three oil giants.'
CNOOC serves as Zeng Qinghong's power base.
It is important to note that CNOOC (China National Offshore Oil Corporation) serves as a significant base for Jiang Zemin, the former leader of the Communist Party of China, and Zeng Qinghong, a former member of the Standing Committee. In 1979, Zeng Qinghong worked as the secretary to Yu Qiuli, who was the director of the National Development and Reform Commission. Yu Qiuli, a native of Ji'an in Jiangxi province, had previously held the position of Minister of the Ministry of Petroleum Industry and was a lieutenant general during the early years of the Communist Party. The National Energy Commission was established in 1980, with Yu Qiuli appointed as its director. Zeng Qinghong became the deputy director of the General Office of the National Energy Commission in 1981, was transferred to the Foreign Affairs Bureau of the Ministry of Petroleum in 1982, and from 1983 to 1984, he served as the deputy manager of the CNOOC Liaison Department, deputy director of the Foreign Affairs Bureau of the Ministry of Petroleum, and secretary of the Party Committee of the South Yellow Sea Oil Company.
Zeng Qinghong, often referred to as the 'military strategist of Jiang Zemin,' used his positions as director of the General Office and Minister of Organization to promote and cultivate loyal allies within the petroleum sector, thereby maintaining long-term control over China's oil industry. He is viewed as the leader of the so-called 'oil faction.'
A 'root-and-branch' style of purging
Following Xi Jinping's rise to power in 2012, the Zhou Yongkang case emerged in 2013, prompting Xi to initiate a thorough cleansing of the petroleum system.
Since 2024, at least 14 senior executives from CNOOC have been dismissed, including former chairman Wang Yilin, former general manager Li Yong, and former deputy general manager Yuan Guangyu, among others. Furthermore, in the last two months, over a dozen senior executives from the energy sector have been collectively dismissed, with reports indicating that such a high turnover rate is exceptionally rare in the history of anti-corruption efforts within state-owned enterprises of the Communist Party.
Many of those involved, such as Yuan Guangyu and Jin Xiaojian, have already retired or moved to less prominent roles, which underscores the current leadership's strategy of conducting a thorough investigation into the 'old faction's roots' over the past twenty years, with the goal of completely eradicating any lingering influence of non-loyalist forces within the energy system.
A detailed examination of the list of individuals who have been dismissed reveals that those under investigation span the entire industrial chain, including 'upstream exploration and development (Tianjin branch), followed by equipment and oil services (CNOOC Services), then refining and procurement (CNOOC Refining), and finally engineering construction (CNOOC Engineering).' This suggests that the task force is utilizing internal financial records and relationship maps to carry out a 'comprehensive cleanup of the industrial chain' by following the leads.
This is clearly not a case of 'isolated arrests,' but rather a 'systematic extermination based on a strategic plan.'
So, why is Xi Jinping so determined to carry out this 'great purge'?
Centralizing the 'money bag'
CNOOC Engineering (COOEC), as the most essential publicly listed engineering firm under CNOOC, has taken on numerous offshore oil and gas platforms, deep-sea equipment, and even large-scale marine engineering projects that have 'dual-use' capabilities.
These massive projects, which have high technical barriers and require funding in the tens or hundreds of billions, involve extremely opaque processes for bidding, equipment procurement, and outsourcing.
The authorities have identified state-owned enterprises and the energy sector as key areas for reform because these sectors concentrate significant national financial resources and state-owned enterprise assets. In the current context of a weakening economy and tightening central finances, addressing the 'insider exploitation' and 'interest transfer' issues within state-owned enterprises is not only aimed at political rectification but also at reclaiming absolute control over the nation's financial resources and the 'money bag' for the central government.
'Restructuring control' as part of the security strategy.
CNOOC's annual net profit and liquidity exceed hundreds of billions, making it a crucial source of energy revenue for the nation. In light of the severe fiscal deficits currently faced, both the central and local governments are urgently seeking financial resources. Xi Jinping's purge of CNOOC executives not only facilitates the confiscation of substantial illegal assets but also allows for the restoration of fiscal authority.
In the context of global geopolitical tensions and instability in the Middle East, offshore oil routes and energy security are vital lifelines for the Communist Party of China. The central government requires a team of energy leaders who are '100% absolutely loyal and follow orders without question,' rather than a complex, independent bureaucratic empire with conflicting interests.
The primary aim of the extensive cleansing of the energy system is to 'shuffle and reorganize.'
With the collective downfall of the former executives, the 'insider control' that had developed through internal promotions has been entirely dismantled. This will inevitably lead to the direct appointment of 'absolutely loyal' officials from the central government to take charge of CNOOC and the entire energy system (for instance, a top leader parachuted directly from an external system), thereby achieving complete control over the 'financial resources' and military logistics. This encapsulates the core essence of the ongoing anti-corruption campaign in the energy sector. It also represents the final struggle of the current system as it faces both internal and external pressures.
(First published by People News)
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