Long way to go for CNOOC after Nexen takeover approval

BEIJING, Dec. 8 (Xinhua) -- As Chinese oil conglomerate China National Offshore Oil Corporation (CNOOC) Ltd. prepares to move ahead with the country's biggest ever overseas acquisition, it faces as many challenges as gains.

The Canadian government on Friday approved CNOOC's 15.1 billion-U.S. dollar bid to buy Calgary-based oil and gas producer Nexen Inc., paving the way for a final completion of the long-debated deal.

The takeover will support CNOOC's international drive and diversify its business but also contains political and financial risks, experts said.

The deal is "of strategic importance" to CNOOC's international expansion, said Wang Zhen, an energy expert at the Academy of Chinese Energy Strategy.

CNOOC has said acquiring Nexen's assets will strengthen its presence in Canada, Nigeria and the Gulf of Mexico and allow it to enter the oil- and gas-rich North Sea regions.

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