Probe of China Bid for Unocal Is Urged

Two California congressmen have urged the Bush administration to thoroughly review any bid by China’s CNOOC Ltd. to acquire Unocal Corp., a letter made available Monday said.

CNOOC, China’s third-largest oil group, has said it is considering a counteroffer to try to trump Chevron Corp.’s $16-billion bid for El Segundo-based Unocal.

The Chinese oil company is interested in acquiring Unocal because Unocal’s oil and natural gas assets in Asia fit CNOOC’s aspirations to become a major regional liquefied natural gas company.

Reps. Richard W. Pombo (R-Tracy) and Duncan Hunter (R-El Cajon), in a letter dated Friday and made available to Reuters, urged Bush to immediately begin a review of China’s growing energy requirements and the implications for America’s political, strategic and economic interests.

If CNOOC should offer to acquire an American energy company, the two lawmakers encouraged Bush to order a review by the Committee on Foreign Investment in the United States, an interagency panel headed by Treasury Secretary John W. Snow.

“Such an acquisition raises many concerns about U.S. jobs, energy production and energy security,” wrote Pombo, chairman of the House Resources Committee, and Hunter, chairman of the House Armed Services Committee.

San Ramon, Calif.-based Chevron won a close race against several oil companies, including CNOOC, to sign an agreement in April to buy Unocal for $16.4 billion.