CNOOC buys Nexen for $15.1 bn

City A.M. Reporter
China's top offshore oil producer CNOOC has entered into an agreement to purchase Canada's Nexen for about $15.1bn (£9.7bn), according to the Chinese company.

"The aggregate value of the consideration of the proposed acquisition is approximately $15.1bn, and is to be payable in cash," CNOOC said in a statement filed on the Hong Kong stock exchange.

"The current indebtedness of Nexen of approximately $4.3bn will remain outstanding. The company intends to fund the proposed acquisition through existing cash resources and external financing."

The acquisition of Nexen will expand the group’s oversea business and resource base in order to deliver long-term sustainable growth, Cnooc added. “Nexen will complement the group’s large offshore production footprint in China."

CNOOC plans to boost output by as much as 2.7 per cent this year to the equivalent of as much as 340 million barrels of oil. CNOOC lost production from its largest offshore oilfield in the first quarter after the site was temporarily shut down.

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