The federal government is severely limiting any future investment by foreign state-owned enterprises in the Canadian energy sector despite approving two long-awaited takeovers Friday evening.
The Chinese National Offshore Oil Corporation, better known as CNOOC, will be allowed to buy Calgary-based Nexen after agreeing to a strict set of requirements demanded by Ottawa exclusively by this bid.
CNOOC, which offered to buy Nexen for $15.1 billion, will have to keep certain parts of its operations in Canada and agree to rules on employing Canadian.
The Chinese oil giant will swear to work by “free market principles” as well as file an annual compliance report to Industry Canada, the department responsible for handling foreign takeovers.
“Under existing guidelines, (CNOOC’s) proposed transaction to acquire control of Nexen is likely to be of net benefit to Canada,” said Industry Minister Christian Paradis in a statement issued Friday.