According to published reports, the federal government has approved two controversial takeovers of Canadian oil companies.
Firstly, China National Offshore Oil Co.'s (CNOOC)(NYSE: CEO, Stock Forum) US$15.1-billion bid for Calgary's Nexen Inc. (TSX: T.NXY, Stock Forum) (NYSE: NXY, Stock Forum) and secondly, the $6-billion acquisition by Malaysia’sstate-owned Petronas of Progress Energy Resources Corp. (TSX: T.PRQ, Stock Forum)
The approval of CNOOC’s acquisition of Calgary-based Nexen represents the largest-ever foreign takeover by a Chinese state-owned company.
Furthermore, Ottawa has also accepted a bid by Petronas to acquire Progress, a Calgary producer with significant natural gas holdings in shale gas fields of northeastern British Columbia.
Currently, Petronas is proposing to build an $11-billion plant in Prince Rupert, B.C., to liquefy gas and export to Asia.