Four Republican senators raise concerns over Cnooc-Nexen deal

9/14/2012

Four Republican senators raise concerns over Cnooc-Nexen deal

WASHINGTON D.C. -- A group of four Republican senators have sent a letter to Treasury Secretary Timothy Geithner expressing concern about Chinese energy giant Cnooc's $15.1 billion deal to buy Nexen, adding their voice to critics of the transaction.

John Cornyn, John Hoeven, Richard Shelby and Jim Inhofe said they were concerned that foreign national interest are mixed with profit motivation in the transaction.

The deal is subject to review by the U.S. government because Nexen, based in Calgary, Alberta, has substantial drilling operations in the U.S. portion of the Gulf of Mexico.

The letter notes that "ownership and operation of U.S. business operations by foreign governments via their corporate proxies becomes particularly concerning when critical natural resources such as oil and natural gas are involved."

Inhofe, a senior member of the Senate Armed Services Committee, first expressed his concerns to MarketWatch last month. The Republicans join two prominent Democrats, Sen. Charles Schumer of New York and Rep. Ed Markey of Massachusetts, who have expressed concern about the transaction in letters to Geithner.

Dow Jones Newswires

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