The China National Offshore Oil Corporation (CNOOC) has acquired Canada-based oil and gas company Nexen for a total consideration of $15.1bn.

As per the arrangement between the companies, Nexen common shareholders will receive cash of $27.50 without interest on each share, whereas the preferred share holders will gain CAD26 ($25.3) plus accrued and unpaid dividends without interest up to closing date of the arrangement.

CNOOC chairman Wang Yilin said, "We strongly believe that this acquisition is a good strategic fit for us and will create long-term value for our shareholders."

CNOOC chief executive officer Li Fanrong said the company intends to fully utilize the acquisition as a means to further its overseas business.

"Nexen is a strong, diverse company with attractive growth prospects, a large resource and reserve base, high potential exploration prospects, and high quality talented employees capable of extracting the value of these assets," Fanrong added.

Nexen will now operate as a wholly-owned subsidiary of CNOOC and its common and preferred shares are expected to be delisted from the Toronto Stock Exchange.