More Chinese investment in Canadian oil and gas companies to come, experts say
July 23, 2012 - 11:53 AM
CALGARY - China's multi-billion-dollar investments in Canadian oil and gas companies today have experts predicting there'll be more to come as the commodity-hungry country looks to secure energy supplies.
Calgary-based oil and gas producer Nexen Inc. (TSX:NXY) has agreed to be acquired by China National Offshore Oil Company for US$15.1 billion cash.
Meanwhile, Talisman Energy is selling a 49 per cent interest in its UK division to Chinese firm Sinopec Corp. for $1.5 billion.
Fred Ketchen, manager of equity trading at Scotia Capital, says buying an oil company makes more sense for the Chinese than paying someone else to import the resource.
Today's Nexen deal, while a blockbuster, follows other Chinese acquisitions in the Canadian oil patch.
Last summer, CNOOK Ltd. bought a stake in the Long Lake oilsands project when it acquired Opti Canada for $2.1 billion.
And earlier this year, Athabasca Oil Sands Corp. decided to sell its remaining 40 per cent stake in the MacKay River oilsands project to joint-venture partner PetroChina, giving a Chinese oil giant full control of an oilsands asset for the first time.
News from © The Canadian Press, 2012