Is CNOOC Interested in Talisman Energy?

Shares of Talisman Energy Ltd. (TLM) were up more than 3% at 10 a.m. ET Monday, on reports that China's CNOOC Ltd. (CEO) may be considering a takeover of the Canadian oil and gas producer.

State-owned CNOOC is in discussions with Talisman about an asset purchase or takeover, the South China Morning Post reported on Monday. PetroChina Co. (PTR), meanwhile, is considering a stake in Australia’s Santos Ltd., the paper said, citing unnamed sources.

It said:

The country’s leading oil companies are beginning to consider jumbo overseas acquisition opportunities again after months of quiet as oil prices soared...

Just last week, Talisman said it planned to sell assets worth up to C$2-billion and boost spending by C$500-million this year to boost its push into unconventional natural gas.