State-backed China National Offshore Oil Corporation (Cnooc; listed subsidiary Cnooc Limited CEO.NYSE, 0883.HKG) is seeking a US national security review for its US$15 billion proposed buyout of Canadian oil producer Nexen (NXY.TSE), in hopes of a smooth completion of the deal, The Wall Street Journal reported. Nexen’s holdings of oil drilling leases in the Gulf of Mexico require Cnooc to seek US approval. The proposed buyout has compelled US lawmakers to demand that the deal be reviewed by the Committee on Foreign Investment in the United States, a federal committee that examines foreign acquisitions for potential security risks. According to a spokesman, the Chinese firm is looking to appeal to the US by asserting its status as a publicly traded company with a record of compliance with US laws and regulations. “We have emphasized that the deal poses no threat to US national security,” he said.
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