China National Offshore Oil Corporation: Operations in Canada
(5 pages of text)
Case (Pub Mat)
In 2005, China National Offshore Oil Corporation (CNOOC) began investing in Canada, when it acquired 16.69 per cent equity of MEG Energy Corp., a private Calgary-based energy company. In 2011, it acquired OPTI Canada, a Canadian oil company that had gone bankrupt, followed in 2013 by the contentious acquisition of Nexen Inc., a Canadian oil and gas company. Despite this enticing potential market and the desire to fuel China's rapidly growing economy, CNOOC faced low oil prices, slow economic growth in Canada, fierce competition from other multinational oil companies, and pressure from environmental non-governmental organizations. Given these challenges, how could CNOOC achieve success in Canada?
This case is designed for use in undergraduate and graduate business courses such as international management, international marketing, and strategic management. Completing this case will give students the opportunity to
- assess the Canadian oil sands industry and the attractiveness of the industry;
- analyze a company's acquisition strategy (the pros and cons off an acquisition); and
- consider how a company can form effective business strategies.
Canada; China, Large, 2017
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