China's state-owned oil giant CNOOC (pron: SEE-nook) will buy Canadian oil sands producer Opti Canada, the companies announced Wednesday. It's another step for the Chinese regime to secure energy resources.
Opti operates out of Alberta, Canada. It's one of the largest known deposits of crude outside the Middle East.
Opti filed for bankruptcy protection last week, so much of what CNOOC will be buying is debt. The deal is worth 2.1 billion U.S. dollars.
The deal is still awaiting approval from Chinese and Canadian regulators. It would be the largest oil sands deal since another Chinese-state owned company, Sinopec, bought the assets of U.S.-based ConocoPhillips last year.
Oil sands are heavy oil deposits found in sand and clay. The oil is more expensive and complicated to extract than from normal deposits. Environmentalists say extracting from oil sands may be far more harmful to the environment.