The Canadian government has started a formal review of China National Offshore Oil Corporation’s (CNOOC) proposed £9.6billion takeover of Nexen.
Ministers have 45 days to consider if the acquisition would be beneficial for the country, but Industry Minister Christian Paradis can extend the process for another month after that.
In addition to giving the Chinese state-controlled firm a foothold in Canada’s oil sands, the deal would also give it control over UK North Sea assets including the Buzzard oil field and £2billion Golden Eagle development. CNOOC announced its move for Nexen on the same day fellow Chinese firm Sinopec said it had agreed a £956million deal for 49% of Canada-listed Talisman’s UK North Sea business, which includes 11 operated platforms.