Chinese oil company CNOOC hones strategy for US review of oil deal

The Chinese oil company CNOOC Ltd. is preparing for U.S. review of its planned $15 billion purchase of the Canadian oil producer Nexen Inc., a deal facing U.S. scrutiny because Nexen has Gulf of Mexico assets.

The Wall Street Journal looks at state-owned CNOOC’s strategy as it readies to submit the deal for review by the Treasury Department-led panel that vets foreign acquisitions with security implications.

From the Journal:

Cnooc will look to allay possible U.S. concerns by affirming its status as a publicly traded corporation governed by an independent board of directors, a spokesman said. The company also plans to highlight its compliance with U.S. laws and regulations via minority holdings in onshore natural-gas drilling projects and leases in the Gulf, he said.

The Cnooc spokesman declined to comment on the possible outcome of the review, conducted by the Committee of Foreign Investment in the U.S., or CFIUS, but he said, “We have emphasized that the deal poses no threat to U.S. national security.”

The deal has raised the hackles of a few members of Congress. More on that here, here and here.



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