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Tuesday, March 24, 2015

Alberta to pick new oil marketers by end-May after Nexen trading shutdown, (NYQ: CEO)

The Alberta government will decide before the end of May which companies will take over contracts to market the Canadian province's crude, a spokesman said on Tuesday, after principal marketer Nexen Energy decided to shut down worldwide trading operations. Nexen Energy, a wholly owned subsidiary of China's CNOOC Ltd , is closing its crude oil trading division as the company cuts jobs in response to plunging global oil prices.Since June 2013 Nexen has managed and marketed roughly half the 70,000 barrels per day of conventional crude that the province of Alberta receives in lieu of cash royalties.Shell Trading Canada, a unit of Royal Dutch Shell, markets 40 percent of the volumes and the Alberta Petroleum Marketing Commission sells the remaining 10 percent directly.Alberta Energy spokesman Chris Bourdeau said the marketing contracts were up for renewal anyway by June 1, but Nexen had submitted a bid to be part of the process back in November.

CNOOC Limited is an investment holding company. The Company, along with its subsidiaries, is a producer of offshore crude oil and natural gas and an independent oil and gas exploration and production company. Shares of CEO fell by 0.34% or $-0.46/share to $133.92. In the past year, the shares have traded as low as $124.16 and as high as $202.33. On average, 183225 shares of CEO exchange hands on a given day and today's volume is recorded at 56766.