Skip to comments.China's CNOOC $15.1-billion Nexen takeover (oil interests in gulf coast)
Posted on 02/12/2013 6:29:18 AM PST by mgist
China's CNOOC clears final hurdle for $15.1-billion Nexen takeover Add to ... BERTRAND MAROTTE
Nexen Inc. has cleared all the hurdles in the $15.1-billion (U.S.) deal to be acquired by CNOOC Ltd. after clinching U.S regulatory approval. The Calgary-based global oil and gas company said on Tuesday it has received approval from the Committee on Foreign Investment in the United States, or CFIUS, which had been closely studying the transaction.
TAKEOVER Video: Nexen deal 'sold out' Canadians, says NDP leader Mulcair Late last month, Chinese giant CNOOC and Nexen extended a deadline to complete the takeover as they awaited U.S. approval. The largest Chinese overseas takeover in history, the deal had already been okayed by regulators in Canada, the United Kingdom, the European Union and China. CFIUS mandate includes assessing the impact of financial transactions on U.S. security, a review that turned out to be lengthy in the case of the CNOOC takeover. State-owned CNOOC was forced to withdraw and refile its application after an initial 75-day review window expired in November. Some of Nexens production on the U.S. Gulf Coast is politically sensitive.
(Excerpt) Read more at theglobeandmail.com ...
The Chinese government, the world’s largest polluter, takes over an oil company with interests in the US gulf, and all over the world. Where is the outrage?
Nexen Secures U.S. Approval of Its Sale to Cnooc of China
BY MICHAEL J. DE LA MERCED
Nexen said on Tuesday that it had received the last regulatory approval needed for its $15 billion sale to a major Chinese oil company, after the Obama administration declared the deal free from national security concerns.
With all necessary regulatory approvals in place, Nexen is set to become the latest acquisition by the Chinese oil industry, as the country seeks more and more sources of oil and natural gas to fuel its economy.
The deal is expected to close around Feb. 25.
The Nexen news release
Chinese Oil Company Bids $15 Billion for Canadian Producer (July 23, 2012)
The buyer in this transaction, the Chinese National Offshore Oil Corporation, or Cnooc, has been among the most acquisitive. It has announced six deals in the last two years, according to Standard & Poors Capital IQ. Nexen, based in Calgary, is the biggest proposed deal by Cnooc since its failed attempt to buy Unocal for $18.5 billion in 2005.
Though most of its holdings are abroad, Nexen has major operations in the Gulf of Mexico, which fall under the jurisdiction of the Committee on Foreign Investment in the United States, or Cfius.
The approval by the Obama administration comes two months after the Canadian government approved the deal. That was regarded as perhaps the biggest hurdle, given spurts of nationalistic concern over foreign buyers claiming big tracts of natural resources in Canada.
A review by Cfius (pronounced SIF-ee-us) is still regarded as potentially tough, however. The organization, which is chaired by the Treasury secretary, makes its decisions behind closed doors, and buyers are not always told why a deal is rejected.
But Cfius has approved several potentially sensitive deals recently, including the sale of the bankrupt car battery maker A123 Systems to the Wanxiang Group.
Lawyers at Cleary Gottlieb Steen & Hamilton wrote in a note to clients on Monday that the A123 approval is evidence that even when politics, protectionism and xenophobia all appear to be significant obstacles, Cfius will not raise objections if it believes no security issues exist.
With proper planning and transparency, Cleary Gottlieb added, even politically controversial transactions can successfully negotiate the Cfius process. (WTH?)
What outrage do you expect?
Nexen used to be Canadian Occidental Petroleum Ltd. I did work for them in the Middle East a couple decades ago.
Chinese companies are government owned. They are major polluters. Where are all the tree huggers?
I'm not promoting this as a good thing. But I see it as somewhat normal business.
However, in 2005, the United States blocked CNOOC’s bid for Unocal Corp because of national-security concerns.
Every day when you listen and watch the news you see more and more examples of how President Obama has divided our country. This past week when the news surfaced that the Keystone Pipeline, instead of benefiting the US and helping make us less dependent on foreign oil, will now become an asset to the Chinese was a shocking realism. The Chinese finalized a $15.1 billion takeover bid for Nexen Inc. which Canada wanted the US to embrace while cautiously courting China after Obamas rejection. The way we have treated Canada, it is not surprising that they are looking to establish diversity as their Prime Minister, Stephen Harper states, so they are no longer dependent on the US accepting as the Harper put it a no brainer. President Obama has alienated Canada with his decision against the project.
When the Keystone XL was presented to Obama, he rejected the offer that could have created jobs for American workers and investments for our pathetic economy. We would have relief from record high gas prices that keep going up. It is obvious that this President does not have the best interest of America at heart The major setback for the people and workers in the United States is immeasurable. The Pipeline would create tens of thousands of high paying jobs and 20,000 construction jobs. It would have brought oil from Canada and North Dakota to refineries in the US. Our major goal has been to set us free from the clutches of the Middle East with their restraints on us for oil. Here we have oil in our own country that our own President will not allow us to take advantage of. Instead, he gives the advantage once again to Chinese workers and investors just like he has done with the building of bridges in infrastructure projects.
When Obama rejected the proposal of the Trans Canadian Corporations Keystone XL to transport oil taken from Canadas tar sands to the American market, the population of Canada regarded it as an insult and an offense from their neighborhood friend. Since that rejection, Canadas Prime Minister Stephen Harper went to China and sold their energy ideas which he did successfully and easily for the Chinese were quite willing. The government of China is a Communist party government with questionable imperialistic goals in the political arena of the world. This is a bulls eye for China that is right in Americas backyard like the bridges, thanks to Obama.
The strong ties between the US and Canada were favorable for both our countries. It is evident that we will suffer if their economic and political relationship continues to deteriorate and weaken. The US will regret the day they ever made the decision to ignore the Canadian oil sands patch. Any goodwill that was between our two nations cannot be mended that easily. Obama seems to have a knack for antagonizing our friends and rewarding our enemies; the same way he treats hard working successful people and businesses as failures. Then he tells foreigners to break the law and come into the country as illegalls with total disregard for the immigrants who are waiting, according to the law, to come into the country.
Obamas policies have been a disaster for our country. His conduct with England when he sent back the bust of Winston Churchill was despicable, and of course, his obvious ambivalent attitude toward Israel. It is fascinating to observe the arrogance of his manner that makes one wonder why the Media and the citizens allow this imposter to do as he pleases whether destroying our image in the world or outsourcing our workers jobs to China which is the exact same thing he has accused Romney of doing. He deliberately does these things because he wants our country to fail, he wants civil unrest, he wants people to feel the scarcity of things they need to survive, he wants to make choices for you and your family, and lastly he wants to think for you by educating the youth to accept wrong for right. Barack Hussein is a very clever, dangerous, sinister person who emulates pure evil incarnate.
How can anyone respect this president to make a good decision when as a father, in his campaign speech, he talks about how his daughters will be hurt if they cannot get birth control through contraceptives or sterilization as young as 12 from Planned Parenthood? WOW!!! A father who uses his daughters to promote a unholy agenda! This means he expects his daughters to be promiscuous!!! Maybe Barack Hussein and Michelle are not fit parents to accept such behavior from their daughters!! In 2010, Planned Parenthood Federation of America got $487.4 million from the federal and state governments, using taxpayers money for one-third of their $1 billion in assets. Taxpayers are funding abortions and birth control which is a choice representing irresponsible behavior that taxpayer should not be responsible to pay for. Here is where consequences must be held accountable for behavior. Planned Parenthood is a farce since there are more unwanted pregnancies, (1 million a year teenage pregnancies to be exact) now than ever before so obviously it is not working. The only thing increasing is the lack of moral behavior in a perverted society with little responsibility for ones own choices!
So what is the real reason that Barack Hussein axed the Keystone deal, well it comes down to his buddies who pull his strings. Who would benefit by Obamas decision? Warren Buffett who owns the Burlington Northern Santa Fe company is among U.S. and Canadian railroads that stand to benefit from the Obama administrations decision to reject the Keystone XL oil pipeline. There is no environment issue here and there is no way our technology will allow us to be totally solar powered. This also strengthens the people who hate us. The second person to profit from Barack Husseins decision is the obnoxious, George Soros. Mr. Obama has placed us at the feet and mercy of Soros, his power and his personal money supplier. The losers are the American people. If you wonder what the Canadian Prime Minster means when he says diversify its energy exports, he is talking about China. The great irony is that now the oil underneath American soil and American waters that would bring great independence and security to us will now benefit China in the world arena.
Obamas policy in regard to oil is an incompetent journey of spreading his green ideology against oil. The green idea is a contrived, progressive gimmick without any reliable proof. Obama has embarrassed our country with Solyndra which has led to a campaign against oil and gas production in the US, but the results are more scandals and unwise federal loan guarantees to doubtful green energy companies. This has occurred when Iran is threatening to close the Strait of Hormuz through which the majority of the worlds oil passes from Persian Gulf fields.
Unfortunately, Obama shows no sign of learning from his mistakes. A responsible president would move quickly to exploit our own accessible sources of oil, lifting restrictions on domestic production and quickly signing on the pipeline deal with Canada, an American ally. Obama, however, is doing neither of these things. In fact, he deliberately seems to act as an enemy of the people instead of a servant of the people. He has been AWOL since the campaigning started and by the tone of his campaign ads, one can see the flaws in his perverted, self-centered personality. Anyone who truly loves this country could never be as disrespectful to our Constitution as he has been without regard for anyone or anything. Barack Hussein is above the law so he decides which parts of our Constitution he will uphold and defend!!!!
How anyone cannot see the motivation behind this man baffles me? He says one thing and does another like financing oil exploration off the shores of Brazil. We are in debt and he lends billions to Brazils company Petrobas to finance offshore drilling near Rio de Janeiro. Isnt it strange that our treasury is desperate for money and yet we dish out foreign aid to Petrobas, one of the largest corporations with Soros as a primary figure?
The question you have to ask yourself is why would Obama willingly underwrite drilling in Brazil that he wont allow at home which would create thousands of needed jobs and the oil would be free to us here? The Green Goblins pleaded their progressive fantasies and managed to go to court to block drilling in the US. This is absolute lunacy. Brazil has achieved energy independence, theyre economy is thriving as the leading oil producer in South America. They are proof that America could become independent of foreign fuel. There is only one word that describes his behavior; Treason. Obama should be asked to resign or be impeached for this is only one of many charges that could be waged against him if we had an honest and professional Media that reported news honestly about all Baracks shenanigans instead of their own spin agenda.
On June 26, the Calgary Herald stated that TransCanada secured 3 permits from the US to build 2.3 billion southern section of the Keystone XL pipeline in Galveston, Texas which will transport 830,000 barrels a day of crude oil and they are working on permits for Tulsa and Fort Worth. Obama blocked the Keystone XL in January and now he is issuing permits so that China will reap the benefits. Why?? Americans will face higher gas prices when the Keystone XL Pipeline is completed. The NRDC report stated that the TransCanada openly told Congress and reporters that now they were looking to ship refined oil from the gulf to the overseas market which is the China Connection.
Just remember that while we were distracted deliberately, on purpose, by the unconstitutional Obamacare SCOTUS fiasco, Obama reinstated a 27-year offshore drilling moratorium, putting the entire continental shelf off limits to new oil and gas exploration until 2035 by the US. I wonder if Barack Hussein will help us pay for gas at $8.00 or more a gallon and whatever it will cost in 2035, if we still exist as a Nation.