A Chinese state company has announced its plans to take over the Canadian company that runs an oil field in the Outer Moray Firth.

The Buzzard field, the largest in the UK, would be operated by the China National Offshore Oil Corporation (CNOOC) after the deal, which would see it buy its Canadian rival Nexen for £9.7bn.

The move was China's biggest- ever foreign corporate takeover.

CNOOC said the transaction would increase its proven reserves by 30%.


Analyst Yan Shi, at brokerage UOB Kay Hian in Shanghai, told the Scotsman newspaper: "CNOOC has been seeking overseas acquisitions, as the domestic reserves are limited. But there have been many limits such as foreign companies being reluctant to sell and prices being too high. This deal would be quite a success."

The deal has been unanimously approved by the Nexen board but will need clearance from the Canadian government, which has the power to block large foreign investments.

Nexen employs 1,200 people across the UK including at an Aberdeen site.

Meanwhile another Chinese company, Sinopec, bought a 49% stake in the North Sea assets of Talisman Energy.

Its UK arm employs 564 staff and nearly 2,000 contractors, and holds interests in 46 North Sea fields.

Talisman said no workforce reductions were planned following the deal.

(NE)