Business / Companies

Nexen deal to benefit all sides: CNOOC

(Xinhua) Updated: 2012-12-10 15:45

BEIJING -- Chinese State-owned oil giant CNOOC Ltd on Saturday welcomed Canada's approval of its $15.1 billion bid to buy Canadian energy company Nexen Inc, saying the deal will benefit all sides.

Canada on Friday gave the green-light for the purchase of Nexen, an oil and gas producer based in Calgary in the province of Alberta. It will be China's largest overseas acquisition once it is completed.

CNOOC is "very pleased" by the approval, "which recognizes the long-term economic benefits for Calgary, for Alberta and for Canada," CNOOC Chairman Wang Yilin said in a statement.

Nexen's assets and employees will also benefit from CNOOC's worldwide operations, he said.

Nexen Chairman Barry Jackson said the transaction will present opportunities for Nexen's employees, stakeholders, communities and projects, according to the CNOOC statement.

The third-largest oil company in China reiterated its commitments to transparency, disclosure, commercial orientation, employment and capital investment.

CNOOC will set up a head office for its North and Central American operations in Calgary to manage about $8 billion of newly-added assets after the deal is completed, said the statement.

It also pledged to retain Nexen's current management team and employees, invest significant capital in the long-term development of oil and gas resources in Canada and list its shares in Toronto.

The closing of the acquisition remains subject to the approvals of other governments and regulatory agencies involved, according to the statement.

CNOOC announced its bid to buy Nexen at $27.5 per share on July 23.


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