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CNOOC acquires Canada's 10th biggest oil company for $15.1bn

CNOOC Limited Enters Into Definitive Agreement to Acquire Nexen Inc. for US$27.50 per share in cash. The purchase price represents a premium of 61% to the closing price of Nexen's common shares on the NYSE on July 20, 2012. Total cash consideration of approximately US$15.1bn will be paid for Nexen's common and preferred shares, and Nexen's current debt of approximately US$4.3bn will remain outstanding. The transaction is expected to close in the fourth quarter of 2012.

Nexen is an independent, Canadian-based global energy company, mainly focused on three growth strategies: oil sands and shale gas in Western Canada and conventional exploration and development primarily in the North Sea, offshore West Africa and deepwater Gulf of Mexico. The Group had average production of 207 Mboe/d (after royalties) in Q2 2012. In accordance with SEC rules, Nexen had 900 Mboe of proved reserves and 1,122 Mboe of probable reserves as of December 31, 2011. In addition, as of December 31, 2011, Nexen had best estimate contingent resources of 5.6 billion boe, predominantly in the Canadian oil sands.

CNOOC is China's largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. CNOOC primarily engages in exploration, development, production and sales of oil and natural gas and has four major producing areas in offshore China as well as oil and gas assets in Asia, Africa, North America, South America and Oceania. CNOOC had net production of 909,000 boe/d at the end of 2011 and net proved reserves of 3.19 billion boe.