Talisman Energy Inc. shares jumped 6 per cent yesterday after a Hong Kong newspaper reported CNOOC Ltd., China’s No. 3 oil company, was in talks to buy the Calgary-based firm or some of its assets.

It comes a week after Talisman, Canada’s third largest independent oil explorer, laid out details of an overhaul aimed at concentrating money and efforts on its highest-return assets around the world, a program that could mean up to $2 billion in asset sales.

Chief Executive John Manzoni plans to sell operations in the Netherlands, Trinidad and Denmark producing up to 40,000 barrels of oil equivalent a day.