Cnooc, Petronas legacy for SOEs in Canada

Author: | Published: 19 Dec 2012

The Canadian government approved controlling acquisitions of strategically important oil sands by foreign state-owned enterprises (SOEs) on December 7.

But its revised guidelines for the treatment of SOEs under the Investment Canada Act suggests greater scrutiny of SOE investments, as well as an end to additional controlling ownership of Canada’s oil sands by SOEs.

According to the guidelines, China National Offshore Oil Corporation (Cnooc) – with its $15.1 billion acquisition of Nexen – and Malaysia’s Petronas – with its $5.2 billion acquisition of Progress Energy Resources – will be the last two SOEs to acquire controlling stakes...