UPDATE 2-Opposition party urges Canada to reject CNOOC's Nexen bid

* NDP cites lack of transparency in approval process

* Says deal raises alarming number of unanswered questions

* Sustainable development can't be sacrificed

* Says Canada must be strategic in development of resource

(Adds broader concerns about oil sands development, paragraphs5-7)

OTTAWA, Oct 4 (Reuters) - The Canadian government mustreject Chinese state-owned CNOOC Ltd's $15.1 billionbid for oil producer Nexen Inc until the impact of thedeal on jobs and the environment is made clear, the mainopposition New Democratic Party (NDP) said on Thursday.

"The lack of transparency in the approval process and analarming number of unanswered questions, have pushed the NDP toreject, as currently structured, the transaction that wouldallow the state-owned CNOOC to take over the Canadian companyNexen," the left-leaning party said in a statement.

The NDP cannot force the hand of the Conservativegovernment, which has a majority in Parliament, but PrimeMinister Stephen Harper has said he will take public opinioninto account as his government decides whether to approve thebid.

The NDP statement said the transaction raises manyquestions, including whether CNOOC will protect jobs and keepNexen's head office in Canada. "It is also unclear how Canada'senvironmental standards will be enforced with regards to thesustainable development of its resources," it said.

In a news conference, the NDP made it clear its oppositionwas not only based on the deal itself but on broader concernsabout the pace of development in northern Alberta's oil sands,one of the world's biggest crude oil deposits, where Nexen has arelatively small stake.

"We have to be strategic. The resources are going to bethere," NDP industry spokeswoman Helene LeBlanc told reporters."They're not going away, and I think we can be strategic...(on)the rate of development of the natural resource."

She said that NDP opposition was also based on the processfor evaluating the bid as well as "our concerns about thecompany itself".

In the written statement, NDP natural resources critic PeterJulian said: "The Conservatives failed to act in good faith andinform the public of the consequences of this takeover. We'retalking about a company that plays a key role in a criticalsector of our economy."

The Conservative-dominated House of Commons rejected an NDPmotion on Wednesday that demanded public consultations on theCNOOC deal. The vote was 145 against the motion to 125 for it.

(Reporting by David Ljunggren, Randall Palmer and Louise Egan;Editing by Peter Galloway)

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Keywords: CNOOC NEXEN/CANADA OPPOSITION