CNOOC, Nexen withdraw, resubmit deal approval application to US government
Singapore (Platts)--28Nov2012/142 am EST/642 GMT
China National Offshore Oil Corp. and Nexen have withdrawn and
resubmitted their application for US approval on their $15.1 billion proposed
deal, Nexen said late Tuesday.
"By mutual agreement with the Committee on Foreign Investment in the
United States (CFIUS), CNOOC Limited and Nexen Inc. withdrew and resubmitted
a Joint Voluntary Notice with respect to the proposed acquisition of Nexen by
CNOOC Limited," Nexen said in a statement.
"Discussions with CFIUS continue, with a view to completing the CFIUS
review process as expeditiously as possible," the company added.
Article continues below...
|Request a free trial of: Oilgram News|
Oilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Nexen said the closing of the deal remains subject to the receipt of
applicable government and regulatory approvals by the relevant authorities in
Canada, the US, the EU and China, and the satisfaction or waiver of the other
customary closing conditions.
CNOOC had said September 6 that it had filed its application with the
CFIUS seeking approval for the deal.
In a note issued Wednesday Credit Suisse said the resubmission is "an
unusual event" but indicates the companies are continuing to "seek closure in
"[It is] surprising to have to re-work the US approval...the deal
attracted very little media [and] public political interest in the US,"
Credit Suisse said, adding that Nexen has 18,000 b/d oil equivalent of
current US production, which is primarily gas, while its oil output
represents less than 0.1% of the US' total oil production this year.
The CFIUS review program is an initial 30-day, potentially followed by a
further 45-day and a final 15-day Presidential review, if required, said
"Hence...we assume December 27 is the next catalyst date in the US," it
said, but pointed out that the initial review deadline was likely to be
November 19, which means the next deadline could be as soon as December 19.
"If CFIUS is not willing to pass the request we would expect CNOOC/Nexen
to sell the US asset and close; but today's announcement is important in that
both parties re-applied -- meaning they think it's more likely to get done
than not," said the bank.
In Canada a deadline for the review of CNOOC's proposed acquisition has
been set at December 11 as Ottawa looks for ways to extract unbreakable job
and investment commitments from CNOOC. That was the second time the review
had been extended, from initial deadlines of October 12 and November 12, for
a decision on whether the deal will provide a net economic benefit for Canada.
The proposed takeover has been approved by Nexen shareholders and the
CNOOC has repeatedly said it expects to receive all regulatory approvals
--Song Yen Ling, firstname.lastname@example.org
--Edited by Martin O'Rourke, email@example.com