Canada extends review of Cnooc bid for Nexen

OTTAWA

Canada has extended its review of Beijing-based Cnooc Ltd. $15.1 billion takeover of Nexen Inc. for a second time, resetting the deadline to Dec. 10.

Prime Minister Stephen Harper's government began its review of the bid for the Calgary oil and gas producer under the country's foreigntakeover law after it was announced on July 23. On Oct. 11, Industry Minister Christian Paradis said he extended the review by 30 days.

"Extensions to the review period are not unusual," Paradis said in a statement that was emailed late yesterday. "The proposed transaction is undergoing a rigorous review under the Investment Canada Act."

"A determination will be made based on the six clear factors that are laid out in detail in section 20 of the Act band the Guidelines on Investment by State-Owned Enterprises," Paradis said in the statement.

"The required time will be taken to conduct a thorough and careful review of this proposed investment." Under the law, Beijing-based Cnooc had to agree to the deadline extension.

Harper, who begins his third trip to Asia this year when he arrives in India tomorrow, has said he wants to rely less on a sluggish U.S. economy for exports and ship more energy to fast- growing Asian economies. Canada relies on exports for about one- third of its gross domestic product, with about three-quarters of its foreign shipments sent to the U.S.

Natural Resources Minister Joe Oliver has said the country's biggest resource projects will require nearly C$650 billion ($653 billion) of investment to develop over the next decade.

Harper has said he would clarify Canada's foreign investment rules in a "policy framework" to be released when the government decides on the Cnooc's bid -- the largest foreign acquisition by a Chinese company.