China’s Canadian Oil Play: Still Alive

China’s Canadian Oil Play: Still Alive

from The Diplomat by diplomat_admin

The Canadian oil patch was shocked by the announcement just before midnight on Friday, Oct. 19, that the Government of Canada was disallowing the $5.5 billion takeover of Canadian gas producer Progress Energy Resources by the Malaysian state owned oil company Petronas. Pundits immediately jumped to the conclusion that this was bad news for CNOOC’s pending $15.1 billion acquisition of Nexen Inc, which has been given an 30 day extension while Canadian officials determine if that deal will be of net benefit to Canada. Indeed, the market drew the same conclusion, pummeling both Progress and Nexen shares when the TSX opened on Monday morning.
Does the rejection of the Petronas bid mean that CNOOC’s ambitions in Canada will be thwarted? Not necessarily.
There are a couple of factors at play.http://thediplomat.com/china-power/chinas-canadian-oil-play-still-alive/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+the-diplomat+%28The+Diplomat+RSS%29