CNOOC Resubmits Bid for Nexen to US Regulators

Chinese oil and gas giant CNOOC has withdrawn and resubmitted its C$15.1 billion (HK$117.8 billion) bid for Canada's Nexen to United States regulators for approval.

CNOOC and Nexen withdrew and resubmitted a notice on the deal for review by the Committee on Foreign Investment, Nexen said on its website, without providing a reason. It said this was done "by mutual agreement" with the committee.

The committee assesses foreign takeovers of US companies on national security grounds. Nexen's US unit operates in the US portion of the Gulf of Mexico.

The Canadian government is reviewing the sale of Nexen under its foreign-takeover law, which specifies transactions need to have a "net benefit" to the country in order to win approval. Canada extended its review of the deal, for a second time, on November 2 to December 10.

Andrew MacDougall, a spokesman for the prime minister, did not comment on a media report that the federal government may want CNOOC to sell the 7 per cent stake Nexen holds in the large Syncrude oil sands joint venture, because fellow Chinese company Sinopec has a 9 per cent stake in it.

"The government is examining its options," he said.