CNOOC Gets Green Light to Buy Nexen (Canada)

CNOOC Limited announced yesterday, December 8, that the company has received notice from Canada’s Minister of Industry that its proposed acquisition of Nexen has been approved by the Minister under the Investment Canada Act. No further approvals are required in Canada.

This approval is one of the conditions precedent to the completion of the proposed acquisition.

Wang Yilin, Chairman of CNOOC Limited said, “We are very pleased to have received Industry Canada approval, which recognizes the long term economic benefits for Calgary, for Alberta, and for Canada in our proposed acquisition of Nexen Inc. Our company will also benefit by adding Nexen’s impressive assets and outstanding employees to our worldwide operations. I express my appreciation for Canada’s welcome of our investment.”

This is an important milestone in the process and confirms our belief that this transaction provides a number of significant benefits to Canada and to Nexen,” said Kevin Reinhart, interim President and CEO of Calgary-based Nexen. “We remain focused on working with CNOOC to bring this transaction to a close.”

Under the agreement, China-based CNOOC has agreed to carry out a number of commitments following completion of the transaction, including the following:

– CNOOC Limited will establish Calgary as the head office of its North and Central American operations, responsible for approximately US$8 billion of additional assets;

– CNOOC Limited will seek to retain Nexen’s current management team and employees;

– CNOOC Limited will invest significant capital as a long-term commitment to the development of oil and gas resources in Canada;

– CNOOC Limited will list its shares on the TSX;

– Consistent with its commitment to social responsibility, CNOOC Limited will build upon Nexen’s existing and highly regarded community and charitable programs, particularly with respect to First Nations and local communities;

– CNOOC Limited will continue to support oil sands research at Alberta universities and to participate in the Canada’s Oil Sands Innovation Alliance (“COSIA”);

– CNOOC Limited will provide a compliance report related to its undertakings annually to Industry Canada.

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Offshore Energy Today Staff, December 9, 2012