State-backed 'Going Out' Unsustainable

Expected to be China's largest foreign deal, China National Offshore Oil Corporation (CNOOC) agreed to buy Canadian oil company Nexen for US$ 18.2 billion. If successful, CNOOC will become the first Chinese energy firm to have access to highly strategic yet environmentally sensitive resources in the Gulf of Mexico. CNOOC's entry into the big leagues of the global energy giants is a milestone in its own right.