Nexen-CNOOC deal receives US approval

By OGJ editors

[Editors Note: Story updated with Markey comment]

Nexen Inc. received approval from the Committee on Foreign Investment in the United States (CFIUS) regarding its CNOOC Ltd.’s $15.1 billion acquisition of Nexen.

All of the requisite approvals have been received now for the transaction to proceed to close, Nexen said. That includes approvals from Canada, the UK, the European Union, and China (OGJ Online, July 30, 2012).

Closing is expected the week of Feb. 25, Nexen said. Nexen's assets in the UK, US, and other countries will continue to be managed from its regional offices, and CNOOC will retain the current management and employees in those operations.

Previously, CNOOC said it is committed to Nexen's assets in the UK and will maintain its operations in the Gulf of Mexico and offshore Nigeria.

In response to what he called the potential transfer of US royalty-free drilling to CNOOC as part of the deal, Rep. Edward J. Markey (D-Mass.) said he will introduce legislation giving the US Interior Secretary new authority 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.”  

Related Articles

India’s ONGC to invest in Daman development in Arabian Sea

08/29/2014 India’s Oil & Natural Gas Corp. will invest $864.5 million to enhance natural gas and condensate production from its Tapti Daman block in the A...

Nexen boosts CNOOC’s first-half production

08/29/2014 Nexen Energy ULC contributed 36.3 million boe during this year’s first half to CNOOC Ltd.’s total net oil and gas production of 211.6 million boe, ...

Fitch: Drilling downturn might prompt some consolidation

08/28/2014 A cyclical downturn in offshore drilling might provide an opportunity for driller contractors having financial flexibility to buy their peers at fa...

Verma named managing director at India’s ONGC Videsh

08/27/2014 India’s ONGC Videsh Ltd. has named Narendra Verma its managing director. Verma’s previous positions include director of exploration of Maharatna ON...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected