China’s largest offshore oil-and-gas producer by capacity, confirmed Saturday the Canadian government approved its US$15.1 billion takeover bid for oil-sands operator Nexen.
The approval cleared a major hurdle for the Beijing-based energy giant in completing what would be China Inc.’s biggest foreign acquisition. It is also the most ambitious bid by a foreign government-owned entity so far to enter North America’s booming energy industry. CNOOC will establish Calgary as the head office of its North and and Central American operations. It will also retain Nexen’s current management team and employees.
The company will invest significant capital as a long-term commitment to the development of oil and gas resources in Canada.
The announcement came after the Canadian government earlier approved more than $20 billion in investments by foreign, government-controlled companies in its energy patch.
The deal still needs U.S. approval as well.