Canada says needs foreign investment, still discussing policy

NEW YORK Fri Nov 16, 2012 2:47pm EST

NEW YORK Nov 16 (Reuters) - Canada needs foreign capital to develop its oil sands and is in the "middle" of discussions on how to approach foreign takeover bids such as that by China's CNOOC for oil and gas producer Nexen, Finance Minister Jim Flaherty said on Friday.

"It's clear that the amount of investment required to develop the oil sands and other resources in Canada exceeds the amount of capital within Canada, so it's inevitable that there will be substantial direct foreign investment in Canada. The question then is what form does that take," Flaherty told reporters after giving a speech in New York.

Flaherty repeated that the government would issue a new foreign investment policy framework in the not-too-distant future. He said he did not know whether that announcement would be simultaneous with decisions on Nexen and on Malaysian state-run Petronas' bid for Progress Energy Resources Corp.

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