China offshore oil producer CNOOC Ltd. Monday agreed to buy Canada’s Nexen (TSX: T.NXY, Stock Forum) for about $15.1 billion in cash, or $27.50 per common share, a 61% premium to Nexen's closing price in New York on Friday.
Nexen's assets include conventional oil and gas, oil sands and shale gas.
"Assets in Canada are generally about more than 20 U.S. dollars per barrel. The cost in the deal is less than 20 dollars per barrel," said Yan Shi, UOB Kay Hian oil analyst, in an interview with Reuters.
"CNOOC has been seeking overseas acquisitions, as the domestic reserves are limited. But there has been many limits, things like foreign companies are reluctant to sell, price too high. This deal would be quite successful."