CNOOC buys Nexen for US$15.1b
By Richard Fu |
July 24, 2012, Tuesday
|
Print Edition
Print Edition
CNOOC Ltd, China's top offshore oil producer, has agreed to buy Canada-based Nexen Inc for US$15.1 billion in the largest overseas acquisition by a Chinese company.
CNOOC yesterday said it will pay US$27.50 per share for Nexen, representing a 61 percent premium to its Friday close on the New York Stock Exchange. Nexen is Canada's 12th largest energy company.
Nexen will complement CNOOC's large offshore production footprint in China and extend CNOOC's global presence with a high-quality asset base in Western Canada, the UK's North Sea, the Gulf of Mexico and offshore Nigeria, CNOOC said.
The transaction received unanimous approval from Nexen's board and is expected to close in the fourth quarter, CNOOC said. CNOOC will also assume US$4.3 billion of debt.
The acquisition could be China's biggest yet to secure overseas energy resources, eclipsing Sinopec's US$7 billion deal for Repsol's Brazilian unit. CNOOC in 2005 failed with a US$18.5 billion bid to buy US oil and gas producer Unocal Corp due to American political opposition.
"The acquisition reflects our strong belief in Nexen's rich and diverse portfolio of assets and world-class management and employees. This is an exciting opportunity for us to build on our existing joint venture relationship with Nexen in Canada, and to acquire a leading international platform in the process," CNOOC Chairman Wang Yilin said.
Nexen produces more than 200,000 barrels of oil equivalent per day and has about 1 billion barrels of proven oil/gas reserves. This will boost CNOOC's net oil/gas production by about 25 percent and proven reserves similarly, according to Mirae Asset Securities analyst Gordon Kwan.
"We believe the Nexen deal will improve significantly CNOOC's long-term production and reserves growth potential," Kwan said, adding that the price CNOOC is paying is "reasonable."
CNOOC has been a major investor in Canada since 2005, buying stakes in companies, including MEG Energy Inc and OPTI Canada Inc.
CNOOC said it plans to establish Calgary as the head office of its North and Central American operations following the Nexen deal, and intends to list its common shares on the Toronto Stock Exchange.
CNOOC intends to retain Nexen's current management team and employees.
CNOOC yesterday said it will pay US$27.50 per share for Nexen, representing a 61 percent premium to its Friday close on the New York Stock Exchange. Nexen is Canada's 12th largest energy company.
Nexen will complement CNOOC's large offshore production footprint in China and extend CNOOC's global presence with a high-quality asset base in Western Canada, the UK's North Sea, the Gulf of Mexico and offshore Nigeria, CNOOC said.
The transaction received unanimous approval from Nexen's board and is expected to close in the fourth quarter, CNOOC said. CNOOC will also assume US$4.3 billion of debt.
The acquisition could be China's biggest yet to secure overseas energy resources, eclipsing Sinopec's US$7 billion deal for Repsol's Brazilian unit. CNOOC in 2005 failed with a US$18.5 billion bid to buy US oil and gas producer Unocal Corp due to American political opposition.
"The acquisition reflects our strong belief in Nexen's rich and diverse portfolio of assets and world-class management and employees. This is an exciting opportunity for us to build on our existing joint venture relationship with Nexen in Canada, and to acquire a leading international platform in the process," CNOOC Chairman Wang Yilin said.
Nexen produces more than 200,000 barrels of oil equivalent per day and has about 1 billion barrels of proven oil/gas reserves. This will boost CNOOC's net oil/gas production by about 25 percent and proven reserves similarly, according to Mirae Asset Securities analyst Gordon Kwan.
"We believe the Nexen deal will improve significantly CNOOC's long-term production and reserves growth potential," Kwan said, adding that the price CNOOC is paying is "reasonable."
CNOOC has been a major investor in Canada since 2005, buying stakes in companies, including MEG Energy Inc and OPTI Canada Inc.
CNOOC said it plans to establish Calgary as the head office of its North and Central American operations following the Nexen deal, and intends to list its common shares on the Toronto Stock Exchange.
CNOOC intends to retain Nexen's current management team and employees.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
