It promised to keep its North American headquarters in Calgary, make greater long-term investments in the oil sands and list on the Toronto Stock Exchange. Now, that mandate is changing.
In part, that was to fulfill a mandate to secure barrels for an energy-thirsty rising superpower. Oil has been the king of fossil fuels for over a century, he said. Chen offered hope for future investment in Canada, particularly in a liquefied natural gas export project CNOOC is now pursuing in northern British Columbia.
Chinese companies are under pressure to boost returns after paying a hefty premium for a foothold in Western Canada. The moves fit a pattern of recent high-level departures at companies backed by Chinese money.
He pulled out a printout of a recent report from Accenture, titled "The Dragons are on the Move," that offers suggestions to maximize efficiency from new acquisitions.
Chen recounted previous energy mega-mergers, including those between Chevron and Gulf, Exxon and Mobil, BP and Amoco — each was followed by large-scale layoffs in the acquired company. Chinese companies are increasingly attuned to the financial impact of failing to address those matters, he said.
It will be a market transformation that will provide decades of demand for gas, he said, defying the critics who suggest Canada is moving too slowly to win its share of the global LNG market. The Nexen takeover took place on Feb. In that sense, his comments are, in some measure, his own; the company says he does not speak for it.
They include maintaining commercial orientation of the business and providing significant economic activity in Canada. Rules around foreign acquisitions by state-owned enterprises have tightened, effectively limiting them to minority positions in the resource.
Previous takeovers of major Canadian companies have been accompanied by bold promises that were rescinded when circumstances changed, often at the cost of jobs. That is a concern," he said.
Virtually all of those deals have come from major state-owned enterprises, and two-thirds of the natural resources spending in the past decade has been on buying up oil and gas.
So far, the state-owned oil company has made good on those and has been publicly bullish on its new purchase. The stock has cratered amid operational setbacks and difficulty securing funding for its stalled West Ells project.
The federal government took legal action in one instance, suing U. He likened the switch from oil to natural gas to the switch from coal to oil: Its acquisition of Nexen was the last major takeover by a Chinese company for a controlling interest in the oil sands.
He also hastens to point out that CNOOC has "made promises and we will honour the promises we have made.
Story continues below advertisement Mr. Industry Canada says it monitors the implementation of the conditions and that the commitments are legally binding. Chairman Feng Zhiqiang took over. If gas is its successor, its reign is also likely to be lengthy.
Like others, they have been challenged by high costs, aboriginal pushback and pipeline bottlenecks. Nevertheless, the company has acquired a reputation as a place for competitors to recruit talent, say people familiar with the cutbacks.
As a subsidiary of CNOOC Limited, Nexen is moving to a more operationally focused organization capable of delivering value from our strong asset base.
A Cnooc nexen for Nexen in Calgary said there are no plans for large-scale layoffs at the company. A tranche of people was let go as recently as last week.
Sinopec did not respond to a request for comment on the cost structure of its Canadian operations. CNOOC company-wide return on investment "on average surpasses 11 per cent," compared to just 3.
Kossman would not say how many people have been let go in Calgary. In particular, he raised "the problems of human resources. He underlined sections that say Chinese companies have, until now, not focused on "developing an integration road map" to create business value from those deals.
I endorse this point," he said.CNOOC Ltd. subsidiary Nexen Energy ULC is restructuring despite pledges to Ottawa by China’s largest offshore oil producer to keep all employees and grow the Calgary-based company, industry.
Jul 23, · State-controlled CNOOC Ltd launched China's richest foreign takeover bid yet on Monday by agreeing to buy Canadian oil producer Nexen Inc for $ billion, forcing Ottawa to decide whether.
Nexen is an upstream oil and gas company responsibly developing energy resources in the UK North Sea, offshore West Africa, the United States and Western Canada.
A wholly-owned subsidiary of CNOOC Limited, Nexen has three principal businesses: conventional oil and gas, oil sands and shale gas / oil. TORONTO — The contentious $billion takeover of Canadian oil and gas company Nexen Inc.
by Chinese state-owned entity CNOOC Ltd closed on Monday, more than seven months after China’s largest-ever foreign takeover was announced. CNOOC company-wide return on investment "on average surpasses 11 per cent," compared to just per cent for the Nexen assets, Mr.
Chen said. "So that is a problem. That is a concern," he said.
Nexen is a Canadian oil and gas company based in Calgary, Alberta. On 25 FebruaryNexen became a wholly owned subsidiary of Hong Kong -based CNOOC Limited. It has three growth strategies: oil sands and shale gas in western Canada as well as conventional exploration and development primarily in the North Sea, offshore in West .Download