CALGARY - It took China National Offshore Oil Co. a couple of tries before oil and gas giant Nexen Inc. warmed to its takeover offer, according to an information circular sent to shareholders.

The Calgary-based company (TSX:NXY) first heard rumblings in February and March that a Chinese state-owned firm may be planning to acquire it.

On May 17, Nexen chairman Barry Jackson and interim CEO Kevin Reinhart met with CNOOC executives in Vancouver, where CNOOC vice chairman Yang Hua confirmed his company was interested in a friendly deal and asked Nexen to enter into exclusive negotiations.

Later that month, Nexen's board decided the price wasn't high enough to allow CNOOC exclusive access to the information it needed to do its due diligence. On June 7, CNOOC reiterated its proposed offer, minus the exclusivity request.

At a meeting on June 13, Nexen's board once again deemed the offer too low. It decided to make a presentation to top CNOOC brass "regarding the company's assets and prospects in order to enable CNOOC to consider increasing its proposed purchase price for the company," the circular said.

Those presentations took place in Vancouver on June 20 and 21. On July 3, CNOOC raised its offer price.

"After hearing the views of management and the company's financial and legal advisers and the recommendation of the special committee, the board determined that it would not support a transaction with CNOOC at the price specified in CNOOC's July 3, 2012 letter but would consider supporting a transaction if a higher price was offered."

Jackson and Yang met in London a week later "to discuss the proposed transaction and particularly whether there was a price that CNOOC could offer that would be acceptable to the board."

Yang suggested a higher price, after which the two companies began to hammer out their deal.

The $15.1-billion, $27.50-per-share friendly deal was announced on July 23.

A special meeting is being held in Calgary on Sept. 20, where shareholders will vote on the transaction. It needs two-thirds support to go ahead.

Federal Industry Minister Christian Paradis must also review the deal to and decide whether it would be of net benefit to Canada.

Earlier this week, he said his department is still waiting for a formal proposal from the Chinese company before a review can begin.

The deal needs the go-ahead from the Competition Bureau as well.

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  • 10. Oil And Gas Accounts For 4.8 Per Cent Of GDP

    The oil and gas industries accounted for around $65 billion of economic activity in Canada annually in recent years, or slightly less than 5 per cent of GDP. Source: <a href="http://www.ceri.ca/docs/2010-10-05CERIOilandGasReport.pdf" target="_hplink">Canada Energy Research Institute</a>

  • 9. Oil Exports Have Grown Tenfold Since 1980

    Canada exported some 12,000 cubic metres of oil per day in 1980. By 2010, that number had grown to 112,000 cubic metres daily. Source: <a href="http://membernet.capp.ca/SHB/Sheet.asp?SectionID=9&SheetID=224" target="_hplink">Canadian Association of Petroleum Producers</a>

  • 8. Refining Didn't Grow At All As Exports Boomed

    Canada refined 300,000 cubic metres daily in 1980; in 2010, that number was slightly down, to 291,000, even though exports of oil had grown tenfold in that time. Source: <a href="http://membernet.capp.ca/SHB/Sheet.asp?SectionID=7&SheetID=104" target="_hplink">Canadian Association of Petroleum Producers</a>

  • 7. 97 Per Cent Of Oil Exports Go To The U.S.

    Despite talk by the federal government that it wants to open Asian markets to Canadian oil, the vast majority of exports still go to the United States -- 97 per cent as of 2009. Source: <a href="http://www.nrcan.gc.ca/statistics-facts/energy/895" target="_hplink">Natural Resources Canada</a>

  • 6. Canada Has World's 2nd-Largest Proven Oil Reserves

    Canada's proven reserves of 175 billion barrels of oil -- the vast majority of it trapped in the oil sands -- is the second-largest oil stash in the world, after Saudi Arabia's 267 billion. Source: <a href="http://www.ogj.com/index.html" target="_hplink">Oil & Gas Journal</a>

  • 5. Two-Thirds Of Oil Sands Bitumen Goes To U.S.

    One-third of Canada's oil sands bitumen stays in the country, and is refined into gasoline, heating oil and diesel. Source: <a href="http://www.nrcan.gc.ca/statistics-facts/energy/895" target="_hplink">Natural Resources Canada</a>

  • 4. Alberta Is Two-Thirds Of The Industry

    Despite its reputation as the undisputed centre of Canada's oil industry, Alberta accounts for only two-thirds of energy production. British Columbia and Saskatchewan are the second and third-largest producers. Source: <a href="http://www.nrcan.gc.ca/statistics-facts/energy/895" target="_hplink">Natural Resources Canada</a>

  • 3. Alberta Will Reap $1.2 Trillion From Oil Sands

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  • 2. Canadian Oil Consumption Has Stayed Flat

    Thanks to improvements in energy efficiency, and a weakening of the country's manufacturing base, oil consumption in Canada has had virtually no net change in 30 years. Consumption went from 287,000 cubic metres daily in 1980 to 260,000 cubic metres daily in 2010. Source: Source: <a href="http://membernet.capp.ca/SHB/Sheet.asp?SectionID=6&SheetID=99" target="_hplink">Canadian Association of Petroleum Producers</a>

  • 1. 250,000 Jobs.. Plus Many More?

    The National Energy Board says oil and gas employs 257,000 people in Canada, not including gas station employees. And the Canadian Association of Petroleum Producers says the oil sands alone <a href="http://www.capp.ca/aboutUs/mediaCentre/NewsReleases/Pages/OilsandsaCanadianjobcreator.aspx" target="_hplink">will grow from 75,000 jobs to 905,000 jobs by 2035</a> -- assuming, of course, the price of oil holds up.


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    Brand value: $1.109 billion Photo: Brian Ferguson, president and CEO of Cenovus Energy (The Canadian Press) Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

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    Brand value: $1.849 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

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    Brand value: $4.726 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>