KING JESUS IS COMING FOR US ANY TIME NOW. THE RAPTURE. BE PREPARED TO GO.
WHEN HARPER COMMENTED ON THESE DEALS.HE SAID ONLY 20% OF ALL THE OIL IS IN WESTERN COUNTRY CONTROL.WHICH LEAVES 80% IN THE HANDS OF ISLAMIC OR COMMUNIST COUNTRIES.THIS WAS A BIGTIME WRONG MOVE BY HARPER.LETTING A COMMUNIST AND MUSLIM COUNTRY GAIN THESE 2 CANADIAN OIL COMPANIES.
Ottawa has approved China's
largest overseas energy acquisition in the country, but has also imposed
tighter restrictions on similar takeovers in future. Chinese
State-owned CNOOC Ltd will buy Canadian oil and gas producer Nexen Inc
in a $15.1 billion deal.Canadian Industry Minister Christian Paradis said on Friday that the
government has approved the acquisition by China's largest offshore oil
and gas explorer CNOOC, ending the anxiety over foreign investments in
Canadian's energy and resources sector prevalent in the last months.The deal had been reviewed twice, over public concerns that the
acquisition would compromise Canada's energy security because the buyer
is a Chinese State-owned company.However, in the latest statement, the Canadian government said
CNOOC's Nexen bid will bring "net profit" to the country under the
current legal framework and that it is satisfied with CNOOC's
commitments on transparency, management and capital investment for the
transaction."It is a breakthrough for China's overseas acquisitions and a good
sign for Chinese companies, in terms of expanding their businesses
abroad," said Liao Na, information director at energy consultancy ICIS
C1 Energy.Chinese investments in North America and Europe, especially in the
energy and resources sector, have been questioned for a long time, she
said.
"Ten years ago, I suggested that Chinese companies should buy oil companies overseas instead of importing oil," said Younghoon David Kim, who was elected co-chair of the World Energy Council. "This is the right track. However, Chinese companies often meet with prejudice in the overseas energy market."Canadian Prime Minister Stephen Harper said the government has been making efforts to reduce ownership in economic sectors, but the energy sector is being bought and controlled by foreign governments instead.
So, although China has got approval for the Nexen deal, it is not the beginning, but the end of the trend, he said. The Canadian government will impose stricter standards for foreign state-owned companies to acquire Canadian companies.But Liao interpreted Harper's statement as a move to appease domestic objections, and felt there would always be exceptions in the free market."We will meet real problems," she said. "The cultural gap, foreign legal issues, different management styles are factual problems Chinese companies will face in their overseas expansion."She said currently Chinese energy companies still focus mainly on Africa and South America.Canada also allowed a smaller foreign takeover on the same day, in which the Malaysian state-owned company Petronas bought Progress Energy for $5.2 billion. The deal had been previously blocked, again raising worries that the CNOOC bid might be affected.Jeremy South, global mining business adviser at Deloitte, said the relationship between the Chinese and Canadian governments would be a crucial factor to the deal's success.Both countries signed the Canada-China Foreign Investment Promotion and Protection Agreement in September during the Asia-Pacific Economic Cooperation forum, a move to boost bilateral investment and enhance bilateral relationship.Harper had said at the time that the country would be open to investment from China as long as the Asian country was willing to reciprocate.Calgary-based Nexen explores western Canada's oil-rich tar sands and operates production rigs in the North Sea, the Gulf of Mexico and Nigerian waters. According to data provider Platts, Nexen is the operator of the 220,000 barrels a day Buzzard field in the UK's North Sea.The takeover will add more than 70 million barrels a year to CNOOC's total output. In October, CNOOC raised its 2012 net production target to 245 million barrels, an increase of 1.5 percent year-on-year.Wang Yilin, chairman of CNOOC, said the deal will be completed by the end of the year. Currently, the deal is undergoing a regulatory review in the United States, with regards to Nexen's assets in the Gulf of Mexico.The acquisition will help China lower risks when energy shortages become an urgent global problem, said Lin Boqiang, director at the China Center for Energy Economics Research at Xiamen University.dujuan@chinadaily.com.cn
Background:
Timeline of CNOOC's bid for Nexen
Related stories:
Canada OKs CNOOC's purchase of Nexen
CNOOC to agree on Canada's demands for Nexen bid
"In light of growing trends, and following the decisions made today, the Government of Canada has determined that foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada."Therefore, going forward, the Minister will find the acquisition of control of a Canadian oil-sands business by a foreign state-owned enterprise to be of net benefit, only in an exceptional circumstance."Outside the oilsands, our Government will strengthen scrutiny under the Act of proposals by foreign state-owned enterprises to acquire Canadian businesses."Some of the considerations that would be factored into a review of such acquisition proposals include:"First, the degree of control or influence a state-owned enterprise would likely exert on the Canadian business that is being acquired."Second, the degree of control or influence that a state-owned enterprise would likely exert on the industry in which the Canadian business operates."Third, and most importantly, the extent to which the foreign government in question is likely to exercise control or influence over the state-owned enterprise acquiring the Canadian business."The onus to show these investments are of net benefit to Canada rests with the investor."Let me be clear."When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."Our Government will therefore proceed as follows."Consistent with the distinction that we make between state and privately-run enterprises, our Government will, over four years, move forward with our commitment to raise the review threshold under the Investment Canada Act, to one billion dollars for private sector applications only."The threshold for foreign state-owned enterprises will remain at three hundred and thirty million dollars in asset value."Let me just make these two additional points.
"First, as I said earlier, the Government continues to strongly encourage inward investment in Canada."For this reason, our Government has accepted the great majority of investment proposals."We will continue to accept those that meet the tests applied under our legislation."Secondly, we will maintain an open, market-based approach to foreign investment in Canada."Canada has decided to have a free market economy."That is our choice, and today's policy statement reinforces that choice."We will continue to push firmly in trade and investment agreements for reciprocal treatment abroad for Canadian investors."Our statements today will not satisfy everybody."Some believe you are either 'for' foreign investment under all circumstances, or that you must be 'against' foreign investment under any circumstances."Practical government rarely permits such simplicity."Foreign investment is not an end in itself."It is the means to an end.
"And that end is the long-term prosperity of Canada and Canadians."Thank you."
WHEN HARPER COMMENTED ON THESE DEALS.HE SAID ONLY 20% OF ALL THE OIL IS IN WESTERN COUNTRY CONTROL.WHICH LEAVES 80% IN THE HANDS OF ISLAMIC OR COMMUNIST COUNTRIES.THIS WAS A BIGTIME WRONG MOVE BY HARPER.LETTING A COMMUNIST AND MUSLIM COUNTRY GAIN THESE 2 CANADIAN OIL COMPANIES.
Canada gives CNOOC green light to buy Nexen
Updated: 2012-12-09 07:36"Ten years ago, I suggested that Chinese companies should buy oil companies overseas instead of importing oil," said Younghoon David Kim, who was elected co-chair of the World Energy Council. "This is the right track. However, Chinese companies often meet with prejudice in the overseas energy market."Canadian Prime Minister Stephen Harper said the government has been making efforts to reduce ownership in economic sectors, but the energy sector is being bought and controlled by foreign governments instead.
So, although China has got approval for the Nexen deal, it is not the beginning, but the end of the trend, he said. The Canadian government will impose stricter standards for foreign state-owned companies to acquire Canadian companies.But Liao interpreted Harper's statement as a move to appease domestic objections, and felt there would always be exceptions in the free market."We will meet real problems," she said. "The cultural gap, foreign legal issues, different management styles are factual problems Chinese companies will face in their overseas expansion."She said currently Chinese energy companies still focus mainly on Africa and South America.Canada also allowed a smaller foreign takeover on the same day, in which the Malaysian state-owned company Petronas bought Progress Energy for $5.2 billion. The deal had been previously blocked, again raising worries that the CNOOC bid might be affected.Jeremy South, global mining business adviser at Deloitte, said the relationship between the Chinese and Canadian governments would be a crucial factor to the deal's success.Both countries signed the Canada-China Foreign Investment Promotion and Protection Agreement in September during the Asia-Pacific Economic Cooperation forum, a move to boost bilateral investment and enhance bilateral relationship.Harper had said at the time that the country would be open to investment from China as long as the Asian country was willing to reciprocate.Calgary-based Nexen explores western Canada's oil-rich tar sands and operates production rigs in the North Sea, the Gulf of Mexico and Nigerian waters. According to data provider Platts, Nexen is the operator of the 220,000 barrels a day Buzzard field in the UK's North Sea.The takeover will add more than 70 million barrels a year to CNOOC's total output. In October, CNOOC raised its 2012 net production target to 245 million barrels, an increase of 1.5 percent year-on-year.Wang Yilin, chairman of CNOOC, said the deal will be completed by the end of the year. Currently, the deal is undergoing a regulatory review in the United States, with regards to Nexen's assets in the Gulf of Mexico.The acquisition will help China lower risks when energy shortages become an urgent global problem, said Lin Boqiang, director at the China Center for Energy Economics Research at Xiamen University.dujuan@chinadaily.com.cn
Background:
Timeline of CNOOC's bid for Nexen
Related stories:
Canada OKs CNOOC's purchase of Nexen
CNOOC to agree on Canada's demands for Nexen bid
Statement by the Prime Minister of Canada on foreign investment
7 December 2012
Ottawa, Ontario
Prime Minister Stephen Harper delivered the following remarks on foreign investment:"Hi everyone."Today the Minister of Industry rendered decisions respecting two foreign investment proposals."These decisions will be closely studied."It is therefore important that Canadians, and also foreign
investors, understand how the government will approach such decisions in
the future."In particular, Canadians generally, and investors specifically,
should understand that these decisions are not the beginning of a trend,
but rather the end of a trend."Investment is critical to our Government's focus on jobs and growth."And, Canadians expect that we shall approve foreign investments that are of net benefit to Canada."But, all investments are not equal."In particular, as we have indicated for many years, purchases of
Canadian assets by foreign governments through state-owned enterprises
are not the same as other transactions."The larger purposes of state-owned enterprises may go well beyond the commercial objectives of privately owned companies."This raises the question of when, and to what degree, foreign state
control of Canadian business can be of net benefit to Canada."To be blunt, Canadians have not spent years reducing the ownership
of sectors of the economy by our own governments, only to see them
bought and controlled by foreign governments instead."That was never the purpose of the Investment Canada Act."It is not an outcome that Canadians would ever support.
"It is not an outcome any responsible Government of Canada could ever allow to happen."We certainly will not."Fairness therefore, and Canada's national interest, require that we
be clear how Canadian law applies to future proposals by foreign
government enterprises to acquire Canadian businesses."The law requires that the government consider each case on its own merits according to broad criteria."This, of course, will continue."In light of growing trends, and following the decisions made today, the Government of Canada has determined that foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada."Therefore, going forward, the Minister will find the acquisition of control of a Canadian oil-sands business by a foreign state-owned enterprise to be of net benefit, only in an exceptional circumstance."Outside the oilsands, our Government will strengthen scrutiny under the Act of proposals by foreign state-owned enterprises to acquire Canadian businesses."Some of the considerations that would be factored into a review of such acquisition proposals include:"First, the degree of control or influence a state-owned enterprise would likely exert on the Canadian business that is being acquired."Second, the degree of control or influence that a state-owned enterprise would likely exert on the industry in which the Canadian business operates."Third, and most importantly, the extent to which the foreign government in question is likely to exercise control or influence over the state-owned enterprise acquiring the Canadian business."The onus to show these investments are of net benefit to Canada rests with the investor."Let me be clear."When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."Our Government will therefore proceed as follows."Consistent with the distinction that we make between state and privately-run enterprises, our Government will, over four years, move forward with our commitment to raise the review threshold under the Investment Canada Act, to one billion dollars for private sector applications only."The threshold for foreign state-owned enterprises will remain at three hundred and thirty million dollars in asset value."Let me just make these two additional points.
"First, as I said earlier, the Government continues to strongly encourage inward investment in Canada."For this reason, our Government has accepted the great majority of investment proposals."We will continue to accept those that meet the tests applied under our legislation."Secondly, we will maintain an open, market-based approach to foreign investment in Canada."Canada has decided to have a free market economy."That is our choice, and today's policy statement reinforces that choice."We will continue to push firmly in trade and investment agreements for reciprocal treatment abroad for Canadian investors."Our statements today will not satisfy everybody."Some believe you are either 'for' foreign investment under all circumstances, or that you must be 'against' foreign investment under any circumstances."Practical government rarely permits such simplicity."Foreign investment is not an end in itself."It is the means to an end.
"And that end is the long-term prosperity of Canada and Canadians."Thank you."
