US review delays closing of big Chinese oil deal

A U.S. regulatory review has delayed completion of Chinese oil giant CNOOC’s $15.1 billion purchase of the Canadian oil company Nexen, a deal that triggered U.S. review because Nexen has oil-and-gas assets in the Gulf of Mexico.

Nexen, in a statement Sunday, said both parties to the deal have agreed to extend the closing date by 30 days until early March.

“Completion of the Agreement remains subject to the receipt of United States regulatory approval and the satisfaction or waiver of other customary closing conditions. Key regulatory approvals have been received from Canada, the United Kingdom, the European Union and the People's Republic of China,” Nexen said.

In the U.S., the deal has triggered review by the Committee on Foreign Investment in the United States, the Treasury Department-led interagency panel that reviews foreign purchases of U.S. assets if the transactions could affect national security. 

Nexen is a multinational company active in Canada’s oil sands, off West Africa’s coast and elsewhere.

CNOOC’s takeover has drawn interest on Capitol Hill due to Nexen’s Gulf of Mexico holdings and because Nexen is a significant player in Canada’s oil sands. Click here, here and here for earlier E2-Wire coverage of the CNOOC-Nexen deal.

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