CNOOC submits Unocal Bid Details to Federal Regulators

July 2, 2005

The China National Offshore Oil Company,(CNOOC), has submitted to U.S. Government regulators the details of its proposed US$18.5 billion purchase of California-based Unocal. The bid comes against a US$16.5 billion offer of cash and stock from Chevron Corporation. CNOOC, which is 70% owned by the Chinese Government, has placed a request for review with the Committee on Foreign Investment in the United States, or CFIUS. Both Chevron and CNOOC have been readying their lobbyists to try and get favorable consideration for their side in Washington. If there is determined to be no threat to national security as a result of the merger, the review of CNOOC's offer could be completed in as little as 30 days. While typically such reviews are not undertaken until after a takeover bid is formally accepted by the target companty, there is precedent for such review to be done before that happens.