The Canadian government approved the acquisition in December.

In order to obtain approval, CNOOC made commitments regarding transparency, disclosure, commercial orientation, employment and capital investment that "demonstrate a long-term commitment to the development of the Canadian economy," Canadian authorities said.

US regulators approved the acquisition of Nexen's assets in the Gulf of Mexico on Feb 12, clearing the last major hurdle in finalizing the deal.

Yang Hua, president of CNOOC, said the assets of CNOOC and Nexen perfectly complement each other.

Through the acquisition, CNOOC's oil and gas reserves will expand by about 30 percent and output will grow by more than 20 percent, Yang said.

"The distribution of the company's oil and gas resources will become more balanced," he said, referring to CNOOC.

Wang Zhen, a professor with the China University of Petroleum, told Xinhua the takeover is just the first step, as the company will face many challenges in its road ahead.

Increasing the company's value is an important target of the acquisition, which means CNOOC will need to boost its business management capabilities, Wang said.

As environmental awareness expands worldwide, CNOOC should also shoulder its due social responsibilities in its global operations, Wang said.

He said the company will also face challenges in global business management, as it has to resolve differences in financial affairs, business practices and culture.

Yang Hua said challenges after the takeover will mainly include ensuring smooth business operations, increasing the company's value and exerting effective control.

CNOOC should strive to push for the integration of the two companies' corporate philosophies and cultures, Yang said.

CNOOC Limited shares dropped 1.7 percent to close at HK$15.06 ($1.94) in Hong Kong on Tuesday.

 

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