Nexen, CNOOC push back closing date of deal

Nexen, CNOOC push back closing of takeover, awaiting US regulatory OK; 4Q earnings delayed

Associated Press

CALGARY, Alberta (AP) -- Canadian energy producer Nexen Inc. said Sunday that it's pushing back the closing date of its $15.1 billion takeover by China's state-owned CNOOC as it works to gain necessary regulatory approvals.

The company said it agreed with CNOOC to move the "outside date" for the deal to March 2 from Jan. 31. It will also delay the release of its fourth-quarter earnings by 30 days as a result.

Nexen noted that completion of the deal remains subject to U.S. regulatory approval and other closing conditions. Key regulatory approvals have been received from Canada, the United Kingdom, the European Union and the People's Republic of China, the company said.

Nexen, a mid-tier energy company, operates in western Canada, the Gulf of Mexico, the North Sea, Africa and the Middle East. Its biggest reserves are in the Canadian oil sands. It produced an average of 213,000 barrels of oil a day in the second quarter.

The board of the Calgary, Alberta, company approved the takeover in July after CNOOC offered a 62 percent premium on the stock price. Shareholders also have approved the sale, which would vastly expand CNOOC's holdings in Canada.

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