China National Offshore Oil Corp. and Nexen have withdrawn and resubmitted their application for US approval on their $15.1 billion proposed deal, Nexen said late Tuesday.
"By mutual agreement with the Committee on Foreign Investment in the United States (CFIUS), CNOOC Limited and Nexen Inc. withdrew and resubmitted a Joint Voluntary Notice with respect to the proposed acquisition of Nexen by CNOOC Limited," Nexen said in a statement.
"Discussions with CFIUS continue, with a view to completing the CFIUS review process as expeditiously as possible," the company added.
Nexen said the closing of the deal remains subject to the receipt of applicable government and regulatory approvals by the relevant authorities in Canada, the US, the EU and China, and the satisfaction or waiver of the other customary closing conditions.
CNOOC had said September 6 that it had filed its application with the CFIUS seeking approval for the deal.
In a note issued Wednesday Credit Suisse said the resubmission is "an unusual event" but indicates the companies are continuing to "seek closure in the US".
"[It is] surprising to have to re-work the US approval...the deal attracted very little media [and] public political interest in the US," Credit Suisse said, adding that Nexen has 18,000 b/d oil equivalent of current US production, which is primarily gas, while its oil output represents less than 0.1% of the US' total oil production this year.
The CFIUS review program is an initial 30-day, potentially followed by a further 45-day and a final 15-day Presidential review, if required, said Credit Suisse.
"Hence...we assume December 27 is the next catalyst date in the US," it said, but pointed out that the initial review deadline was likely to be November 19, which means the next deadline could be as soon as December 19.
"If CFIUS is not willing to pass the request we would expect CNOOC/Nexen to sell the US asset and close; but today's announcement is important in that both parties re-applied -- meaning they think it's more likely to get done than not," said the bank.
In Canada a deadline for the review of CNOOC's proposed acquisition has been set at December 11 as Ottawa looks for ways to extract unbreakable job and investment commitments from CNOOC. That was the second time the review had been extended, from initial deadlines of October 12 and November 12, for a decision on whether the deal will provide a net economic benefit for Canada.
The proposed takeover has been approved by Nexen shareholders and the Canadian courts.
CNOOC has repeatedly said it expects to receive all regulatory approvals by year-end.
