The European Commission has granted clearance for the proposed $15 billion acquisition of Canadian company Nexen by China's state-owned CNOOC, the EC said Friday.
It had been unclear whether approval from the EU for the deal, which is still held up as Canada decides if it is the national interest, would be required.
There had been some expectation it might need the green light from Brussels because of Nexen's oil assets in the UK North Sea.
Nexen is operator of the 220,000 b/d Buzzard field in the UK North Sea, the largest single contributor to the UK's oil production.
"The European Commission has granted clearance under the EU Merger Regulation to the proposed acquisition," the EC said in a brief statement. The UK government has also said CNOOC would have to pass a test to judge its suitability as an operator in the North Sea.
"The UK welcomes investment in the North Sea. Any new entrant would have to abide by the UK's stringent oil and gas regime and all operators are assessed to ensure they are competent to run oil and gas operations," a government spokesman said in September.
At the end of November, Nexen said the closing of the deal still 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.
In Canada a fresh December 11 deadline for the review of CNOOC's proposed acquisition has been set 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.
