Newspaper article The Canadian Press

CNOOC in No Hurry to Ink More Oilpatch Deals after Nexen Takeover Closes

Newspaper article The Canadian Press

CNOOC in No Hurry to Ink More Oilpatch Deals after Nexen Takeover Closes

Article excerpt

CNOOC in no hurry to ink more oilpatch deals

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CALGARY - The head of CNOOC Ltd. said the Chinese-state-owned firm is in no hurry to do any more big deals in the oilpatch since its $15.1 billion takeover of Nexen closed earlier this week.

"In the very short term, this is not my priority," said chief executive Li Fanrong at Nexen's Calgary headquarters Wednesday.

"My priority is to get this organization right and to better realize the full potential of Nexen's resource."

Through the deal, CNOOC will see a 20 per cent increase in its yearly production and a 30 per cent increase in its reserve base, said Li, who will chair Nexen's new board.

Kevin Reinhart, who will remain in charge of Nexen's operations, as well as $8 billion in CNOOC assets that will be managed out of the Calgary office says there is more than enough opportunity to grow what Nexen already has.

"And so the need to go outside and acquire for future growth has never been a big part of Nexen's growth strategy and it doesn't need to be," he said. "We've got lots of internal organic opportunities around the world to pursue."

Nexen operates in the North Sea, Alberta's oilsands, northeastern B.C., the Gulf of Mexico and West Africa.

Both Li and Reinhart say it will be "business as usual" for Nexen's 3,000 employees. There was a town hall meeting in Calgary earlier Wednesday to answer workers' questions.

Reinhart said there was "abnormally low" turnover since the deal was first made public last July, as many of those employees had long-term incentive programs tied to the deal closing.

And Reinhart says he doesn't foresee a mass exodus now that the transaction is done.

"People like working for Nexen. They're proud of working for Nexen," he said.

"And it's a big reason why CNOOC is leaving the autonomy that we have, keeping the Nexen name, keeping the Nexen values."

Reinhart added there's virtually no overlap between CNOOC and Nexen, so employees aren't anxious as to whether they will continue to have their jobs. …

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