A major Chinese oil company has reached agreement to purchase Calgary-based Nexen for 15.1 billion dollars. The deal, in which the China National Offshore Oil Corporation (CNOOC), will acquire all of the outstanding common shares of Nexen for 27.50 U.S. per share in cash, has been approved by the board of directors from both companies. In a release on its website, the Chinese company says the agreement will enhance its presence in Canada, Nigeria and the Gulf of Mexico, and adds a significant presence in the U.K.  It also establishes Calgary as its North and Central American headquarters. In addition, CNOOC announced that it intends to retain Nexen’s current management and employees, and will continue to support oil sands research at Alberta universities and participate in the Canada’s Oil Sands Innovation Alliance (COSIA).

Mr. Wang Yilin, Chairman of CNOOC Limited said, "The acquisition reflects our strong belief in Nexen’s rich and diverse portfolio of assets and world-class management and employees. This is an exciting opportunity for us to build on our existing joint venture relationship with Nexen in Canada, and to acquire a leading international platform in the process. We strongly believe that this acquisition will create long-term value for CNOOC Limited’s shareholders."

Commenting on the acquisition, Mr. Barry Jackson, Chairman of the Board of Nexen, said, "This transaction delivers significant and immediate value to Nexen shareholders. The Nexen Board is unanimous in its view that the transaction is in the best interest of Nexen and recommends shareholders vote in favor of the transaction."