China's third-largest oil and gas producer China National
Offshore Oil Corp. Ltd (CNOOC) has
voluntarily requested the Committee on Foreign Investment in the
United States (CFIUS) to review its acquisition plan for Unocal
Corp, in a bid to clear up doubts about the deal.
Beijing-based CNOOC said on Saturday that it had filed a notice
with CFIUS for the committee to review its US$18.5 billion all-cash
offer to buy the US oil conglomerate Unocal Corp, wrangling with a
US$16 billion cash-plush-stock proposal from California-based
Chevron Corp.
"It's a voluntary notice from CNOOC. We hope the review will
enter formal proceedings as soon as possible since the transaction
is purely commercial," said a CNOOC spokesman.
"We welcome this opportunity and believe that once all the facts
are known and the commercial purpose and terms of the transaction
are fully understood, many initial wrong impressions will be
corrected, and many doubts and questions will be favorably
resolved," said CNOOC Chief Financial Officer Yang Hua on
Saturday.
CNOOC's all-cash bid, although more attractive financially than
Chevron's offer, has triggered rising concern among US government
officials that it could be subsidized by the Chinese government
thereby posing a threat to US national security.
"This filing gives CNOOC the opportunity to comply with all US
rules and regulations in an open and transparent manner, and to
discuss our proposal fully... We are cooperating fully and look
forward to a formal review conducted in an expeditious manner,"
Yang said.
"CNOOC's proposed transaction has generated a significant amount
of interest, and we look forward to beginning the CFIUS review to
respond to that interest and provide timing certainty to Unocal
stockholders for our superior offer," Yang added.
(China Daily July 4, 2005)