• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 4 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Green Light for China-Nexen Takeover

By 25 February, China will have acquired the US assets of Canada’s Nexen Inc. for $15.1 billion after the US Committee on Foreign Investment cleared China’s CNOOC for the last remaining regulatory hurdle.

CNOOC Ltd’s acquisition of Nexen’s US assets will represent the largest-ever overseas purchase by a Chinese company, and it was the Committee on Foreign Investment’s task to determine whether such a move represented a national security threat.

While Nexen is a Canadian company out of Calgary, the US has jurisdiction for the acquisition because 8% of Nexen’s total production takes place in the Gulf of Mexico. Canada had already approved the deal in December, but made it clear that this would be the last such deal by a foreign state-owned company. 

US officials have hinted similarly. Rep. Edward J. Markey (D-Mass.) vowed to introduce legislation that would give the US Interior Secretary power to block "a loophole preventing the approval of similar lease transfers in the future."

“Chinese government-owned oil corporations should not be allowed to drill for American oil in the Gulf of Mexico without paying a dime in royalties to US taxpayers,” Markey said. “The Interior Department should have the authority to review all possible transfers of oil and gas leases on public lands so that we can prevent massive wealth transfers from US taxpayers to foreign governments.”

For CNOOC, it’s a very attractive acquisition, which includes Nexen’s assets in the UK, the US Gulf of Mexico and elsewhere, like offshore Nigeria. One of the best assets will be Nexen’s lucrative North Sea’s Buzzard fields. In total, the purchase will boost CNOOC’s production by about 23% for 2013.

What do the markets say? Well, Nexen rose 2% in Toronto on the news, climbing to $27.43.

By Charles Kennedy for Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News