Minister Paradis Confirms China National Offshore Oil Corporation and Nexen Inc. Transaction Is Subject to Review Under the Investment Canada Act

OTTAWA, ONTARIO--(Marketwire - July 23, 2012) - Today, the Honourable Christian Paradis, Minister of Industry, made the following statement:

"I can confirm that China National Offshore Oil Corporation's (CNOOC) proposed acquisition of Nexen is subject to review under the Investment Canada Act.

"CNOOC has indicated that it will be filing an application for review under the Act shortly. Where an investment is subject to review under the Act, my approval is required prior to implementation. I approve applications where I am satisfied that a proposed investment is likely to be of net benefit to Canada.

"This determination is based on the six factors listed in the Act, which are the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on resource processing and on the utilization of parts, components and services produced in Canada; the degree and significance of participation by Canadians in the Canadian business; the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; the effect of the investment on competition within any industry or industries in Canada; the compatibility of the investment with national industrial, economic and cultural policies; and the contribution of the investment to Canada's ability to compete in world markets.

"I understand the Competition Bureau will also conduct a review of the proposed transaction. Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition."