CNOOC expect Nexen deal to be completed in Q1 of 2013

12/28/2012

CNOOC expect Nexen deal to be completed in Q1 of 2013

BY YVONNE LEE

HONG KONG -- CNOOC said it expects its proposed $15.1 billion purchase of Nexen to be completed in the first quarter of 2013.

A CNOOC spokeswoman said the deal is still awaiting overseas government approval so it couldn't be closed in the fourth quarter, as originally planned. Earlier this month, Canada approved Cnooc's proposed acquisition of Nexen, clearing a major hurdle for the Beijing-based energy giant in completing what would be China's biggest ever 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. The deal is now waiting approval by the United States government.

CNOOC and Nexen were already partners in developing Canada's oil sands. The Chinese company acquired Nexen's bankrupt partner, OPTI Canada, which was involved in the Long Lake oil sands project, in 2011. For Cnooc, the Nexen deal comes seven years after the Chinese company's 2005 failure to acquire Unocal for $18.5 billion.

Dow Jones Newswires

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