BACK TO CONTENTS


CNOOC


FOCUS 12


access to more detailed information, but as Vic explains, this presented its own set of challenges. “We had a very limited amount of time in which to work, “he says. “So the challenge was to keep a very tight focus on the information we knew CNOOC would need to make an educated bid.“


The due diligence process took place against a backdrop of painstaking negotiations on the part of CNOOC. Building on their experience from the aborted bid for Unocal in 2005, CNOOC took great care in addressing the concerns of Nexen’s stakeholders in the US and Canada.


As the bid progressed, KPMG’s involvement widened. “We had a multi-disciplinary team in place,“ says Vic. “In addition to carrying out the due diligence, we also advised on deal structuring and regulatory reporting.”


It was a process that not only drew upon the technical skills associated with fi nancial analysis, transaction structuring and regulatory reporting, but also on deep oil and gas sector knowledge and the ability to marshal workstreams around the clock across multiple jurisdictions.


The CNOOC acquisition of Nexen cleared its last regulatory hurdle in early February 2013 and the transaction was completed on the 26th after several months of work by CNOOC and its advisors. For CNOOC, the transaction has not only meant the acquisition of a large reserve and resource base, but also the attainment of experienced employees capable of developing and extracting value from the assets.


CNOOC International’s Secretary Likun Kuang commented:


“KPMG’s work was critical to the transaction. Through the due diligence, the KPMG team not only helped CNOOC to better understand Nexen’s fi nancial situation but also identify the contingent risks, thereby helping the commercial team to build their commercial valuation model. More importantly, even after the completion, the KPMG team is still contributing signifi cantly towards integration, purchase price allocation and tax structuring/ re-organisation. CNOOC is looking forward to further cooperation with your team.”


Vic Naathen Associate Director, KPMG Tel: +44 (0)7736 060232 victor.naathen@kpmg.co.uk


Daisy Shen Partner, KPMG Tel: +861085085819 daisy.shen@kpmg.com


Meanwhile, the project was another example of KPMG member fi rms advising on signifi cant Chinese outbound transactions at a time when the country’s energy companies continue to emerge as key players on the world stage. Since then, KPMG member fi rms have advised on a number of signifi cant oil and gas transactions, including Sinopec’s acquisition of 49% of Talisman Energy UK’s North Sea assets.


© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29