Canada opposition attacks gov’t over CNOOC Nexen bid
Posted in Beavers by: admin
* Canada has started formal probe of CNOOC bid
* Government review to gauge “net benefit” to Canada
* Opposition says Ottawa has mishandled the matter
By David Ljunggren
OTTAWA, Aug 30 (Reuters) – Canada’s main opposition party
criticized how the government is handling a $15.1 billion bid by
China’s CNOOC Ltd for Canadian oil producer Nexen Inc
on Thursday, underlining how politically sensitive the
matter has become.
The Conservative government is probing the offer — China’s
richest foreign takeover bid yet — to see if it is of net
benefit to Canada.
Political sources say the cabinet is split over the CNOOC
deal, in part because of concerns that China would gain more
control over Canada’s energy patch.
The left-leaning New Democratic Party (NDP), which has long
complained that the net benefit test is too opaque, demanded
open hearings into the proposed takeover and noted that two
former aides to Prime Minister Stephen Harper were lobbying the
government on behalf of CNOOC.
Peter Julian, the party’s natural resources spokesman, cited
an online Abacus Data poll last week that found that 57 percent
of respondents opposed the deal.
“When we look at how the Conservatives seem to be
approaching this takeover, they seem to be doing it in a
non-transparent and irresponsible way,” Julian told a news
conference.
“There are more and more Canadians who are concerned about
this takeover … we believe it is in the public interest to
have a transparent and thorough review.”
Although Ottawa is supposed to say nothing during the review
period, Harper made clear last week that reciprocity and
Canadian public opinion would be important factors in the
government’s decision.
Some critics complain China needs to open up more to
Canadian businesses if it wants to continue buying energy assets
in Canada.
Julian said the New Democrats would decide whether to back
the bid after consulting energy workers and others who could be
affected.
“Certainly we’re concerned about the impact on employment,”
he said.
Industry Minister Christian Paradis, charged with taking the
final decision on CNOOC, said the review process is sound.
“We have no lessons to take from the NDP, whose reckless
economic policies will deter investment, kill jobs, and hurt
Canadian families,” he said in a statement.
Harper went to China in February to sell the idea of buying
Canadian oil while other ministers say $500 billion ($505
billion) in investment is needed to ensure Canada’s natural
resources are developed properly over the next decade.
The CNOOC bid is a big test of the government’s assertions
that Canada is open to foreign investment.
Harper blocked a bid by BHP Billiton for fertilizer
producer Potash Corp in late 2010 amid pressure from
the province of Saskatchewan, where Potash Corp is based.
On Thursday, a Canadian official revealed that Ottawa will
take environmental protection into account in deciding on the
CNOOC bid.
“Net benefit makes sure that our resource sector will be
well looked after,” Junior Finance Minister Ted Menzies told
reporters.
Referring to foreign energy firms operating in Canada, he
added: “We make sure that they treat the environment with
respect, make sure that they do due diligence and look after the
environment as they are doing it.”
The remarks were the first time any government official had
mentioned the role of the environment in the review process.
Nexen is one of several oil companies operating in the tar
sands of northern Alberta, one of the world’s biggest deposits
of crude. Oil sands production has been criticized severely by
environmentalists for its carbon emissions and its impact on
surrounding ecosystems.
Article source: http://in.reuters.com/article/2012/08/30/canada-nexen-idINL2E8JU8K520120830