CNOOC modifies oil terms

2013-03-04 02:47:22 GMT2013-03-04 10:47:22(Beijing Time)  SINA.com

Chinese oil giant CNOOC has agreed to changes to its oil-drilling leases in the Gulf of Mexico to quell US national security concerns as a condition for US approval of its $15 billion buyout of Canada's Nexen Inc.

The "most significant" term of the agreement involves removing CNOOC as site operator, Bloomberg reported, citing an email to employees from Peter Addy, the president of Nexen's US unit.

The Wall Street Journal reported the new structure may be similar to others where a majority owner retains the bulk of profits and finances most of the costs, while minority stakeholders serve as the primary site operators.

CNOOC and Nexen executives had declined to give details of what they had to do to satisfy the CFIUS following its extended review.

(Agencies)

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