CNOOC-Nexen deal

China National Offshore Oil Corporation (CNOOC) is the third-largest national oil company in China, after CNPC (parent of PetroChina), and China Petrochemical Corporation (parent of Sinopec). It focuses on exploration and development of crude oil and natural gas offshore of China. CNOOC Group is owned by the government, and its subsidiary, CNOOC Ltd is listed in Hong Kong. Another subsidiary, China Oilfield Services, is listed in Hong Kong and New York. In July 2012, CNOOC announced an agreement to acquire Nexen, a Canadian oil and gas company, for approximately US$15.1 billion.


CNOOC resubmits bid for Nexen to US regulators

PUBLISHED : Thursday, 29 November, 2012, 12:00am
UPDATED : Thursday, 29 November, 2012, 3:46am

Chinese oil and gas giant CNOOC has withdrawn and resubmitted its C$15.1 billion (HK$117.8 billion) bid for Canada's Nexen to United States regulators for approval.

CNOOC and Nexen withdrew and resubmitted a notice on the deal for review by the Committee on Foreign Investment, Nexen said on its website, without providing a reason. It said this was done "by mutual agreement" with the committee.

The committee assesses foreign takeovers of US companies on national security grounds. Nexen's US unit operates in the US portion of the Gulf of Mexico.

The Canadian government is reviewing the sale of Nexen under its foreign-takeover law, which specifies transactions need to have a "net benefit" to the country in order to win approval. Canada extended its review of the deal, for a second time, on November 2 to December 10.

Andrew MacDougall, a spokesman for the prime minister, did not comment on a media report that the federal government may want CNOOC to sell the 7 per cent stake Nexen holds in the large Syncrude oil sands joint venture, because fellow Chinese company Sinopec has a 9 per cent stake in it.

"The government is examining its options," he said.

Bloomberg, Reuters


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