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Ottawa is conducting the review to determine whether a takeover by the Chinese state-owned enterprise would bring a “net benefit” to Canada.

CNOOC launched China’s richest foreign takeover bid in July when it agreed to buy Nexen, whose global portfolios include oil sands and shale gas.

“The review period for CNOOC Limited’s proposed acquisition of Nexen Inc. under the Investment Canada Act has been extended to December 10, 2012,” Christian Paradis, Canada’s industry minister, said in a statement.

Anytime in politics when people are making decisions on a late Friday night it’s because they’re scared of public reaction

The extension will give Canada more time to articulate broad guidelines on foreign takeovers of Canadian companies. The government wants to issue the framework at the same time it makes its ruling on the CNOOC proposal.

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Another extension was widely expected by market players and political observers, but nonetheless it suggests the political ramifications of the proposed takeover have the Conservatives bewildered on how to proceed, said Peter Julian, the NDP’s natural resources critic.

“Anytime in politics when people are making decisions on a late Friday night it’s because they’re scared of public reaction,” he said in a phone interview.

”They desperately want to rubber stamp it, and because they know that public opposition is growing they’re just trying to buy more and more time.”

Under Canadian law, all major foreign takeover proposals are subject to approval of the federal government, which must certify that the deals benefit the country.