The Associated Press November 28, 2011, 12:17PM ET

CNOOC completes acquisition of Canada's OPTI

CNOOC Ltd., one of China's three main state-owned oil and gas producers, said on Monday that it has closed its acquisition of Canadian oil sands producer OPTI Canada Inc.

The deal, first announced in July, will expand China's presence in Canada's oil sands industry. CNOOC is getting OPTI's 35 percent working interest in Long Lake and three other project areas located in the Athabasca region of northeastern Alberta. Canadian energy company Nexen Inc. owns the rest, and operates production there.

The deal called for CNOOC to pay OPTI shareholders $34 million and assume just over $2 billion in debt.

CNOOC said it would de-list OPTI shares from the TSX Venture Exchange, effective on Thursday.

It also said OPTI would redeem all of its first lien notes for 102 percent of the principal, plus interest, on Dec. 28. The notes consist of $525 million of 9 percent notes due next year and $300 million of 9.75 percent notes due in 2013.

CNOOC's U.S. shares rose $11.95, or 7 percent, to $183.88 in midday trading on the New York Stock Exchange.


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