CNOOC (Chinese) to Buy Nexen

[malcolmk14]

Originally Posted by c.t.ner

Thanks for the reply. When I was at Talisman it was the same feeling (albiet the rumors of a Chinese take over never materialized). The younger guys starting out were nervous, as there wouldn't be much reward from vesting the options and leaving. While everyone else was praying and hoping so they could cash out and go to a smaller company... or at least buy a new boat.

It'll be interesting to see if there will be shifts within the core structure of the company. The Oil and Gad industry in Calgary is pretty specialized, I don't think it would be in the best interests of CNOOC to really rock the boat.

Yeah my Nexen contact who has all the experience is expecting a large sum of money to be paid for senior staff to stay and make it a smooth transition. A "pay-to-stay" bonus, he calls it. It helps minimize turnover in the company and keep the culture pretty consistent while the new bosses become accustomed to the business.

It sounds to me like most staff at his level is pretty excited about it. I was at a social event with 3 senior level Nexen employees and one former senior Nexen employee and all the talk of the Chinese takeover was very positive.

[bizaro86]

Originally Posted by fotze

Those retention bonuses can be pretty sweet. Most Burlington staff got 1 year salary to stay at Conoco a few years back.

Nexen was always been pretty damn generous to its employees so I am sure they had some stuff written into the contract to treat them well.

I think the Burlington thing depended on job title. I have a couple of buddies who worked there at that time, one an engineer one in finance. The engineer got the 1 year bonus and the finance guy didn't, which caused some friction between them for awhile.

[The Yen Man]

Originally Posted by Hack&Lube

There's a big difference between selling Canada to the Chinese and selling Canadian products to the Chinese.

But be was trying to get more investments into Canada, he wasn't trying to get China to buy Canadian oil, which they would have anyways since they need it.

[c.t.ner]

Originally Posted by fotze

ConocoPhillips people got nothing as well. Definite friction.

Yeah, I had a friend that was with Conoco at the time and he was pretty furious. It made it hard to work with people when you new the other person was getting X number of dollars more to do the same job you've been doing for years, just because they came from the other company. It was a very strange dynamic.

[Regulator75]

CALGARY - A U.S. agency has given the final approval required for the acquisition of Calgary-based Nexen Inc. (TSX:NXY) by CNOOC, one of China's largest energy companies.
The US$15.1-billion friendly takeover had broad implications in Canada and elsewhere, due to Nexen's extensive holdings in Alberta's oilsands, Gulf of Mexico and the North Sea.
Nexen says the Committee on Foreign Investment in the United States has now given its approval, clearing the way to close the deal in the week of Feb. 25.

http://www.huffingtonpost.ca/2013/02...n_2668789.html

[Regulator75]

http://www.calgaryherald.com/touch/s...tml?id=9767404

CALGARY — The Chinese national oil company that bought Nexen Inc. for $15.1 billion 14 months ago is replacing Kevin Reinhart, the Nexen chief executive who helped negotiate the sale.

In a news release, the company said Reinhart would be “departing” from his role as head of Calgary-based subsidiary Nexen Energy ULC and would be replaced by Fang Zhi, an executive vice-president based in Beijing with CNOOC Ltd.

[I-Hate-Hulse]

New Chinese ownership, same shinguardy assets, same shinguardy results.... was this really a surprise?

[BigNumbers]

It's TAQA all over again... Love it. The game plan is defintely in Canada's favour:

1) Foreigners show up, pay us handsomely for mediocre assets
2) Foreigners realize what they've bought, start thrashing trying to create value
3) Foreigners Give up, sell off assets/company back to Canadians for a fraction of what they paid

Rinse. Repeat.

[Peanut]

Originally Posted by BigNumbers

It's TAQA all over again... Love it. The game plan is defintely in Canada's favour:

1) Foreigners show up, pay us handsomely for mediocre assets
2) Foreigners realize what they've bought, start thrashing trying to create value
3) Foreigners Give up, sell off assets/company back to Canadians for a fraction of what they paid

Rinse. Repeat.

What's the anticipated timeline to get to the end of Step 3?

[SeeGeeWhy]

I thought they were required to keep a certain amount of staff and management as Canadians

[username]

They've been cleaning house over at Nexen. The marching orders are to get rid of a lot management........

[Peanut]

Originally Posted by username

They've been cleaning house over at Nexen. The marching orders are to get rid of a lot management........

When did that start? I haven't heard anything like that.

[Ducay]

I just take solstace in the fact the guys that are making the plays are Canadian, if/when Chinese clear house to all Chinese staff, they'll dry up pretty quick on anything unconventional that they've got to operate.

I can't imagine all the field staff (roughest of the rough) would be thrilled working for "them"