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US lawmakers could nix CNOOC takeover bid
(Agencies)
Updated: 2005-07-27 10:33

US lawmakers agreed on the text of a legal measure that would delay China National Offshore Oil Corp. (CNOOC) takeover of US oil firm Unocal Corp. by 120 days, a step that could jeopardize the bid, AFP quoted US officials as saying.

China National Offshore Oil Corporation's (CNOOC) oil rigs is seen in China's Liaodong Bay of the Bohai sea February 3, 2005. [newsphoto]
China National Offshore Oil Corporation's (CNOOC) oil rigs is seen in China's Liaodong Bay of the Bohai sea February 3, 2005. [newsphoto]
Members of the House of Representatives and Senate hammered out a compromise amendment that would postpone the start of a formal US government review of the bid by China National Offshore Oil Corp. (CNOOC).

The amendment tabled by Republican Congressman Richard Pombo now goes into a long-awaited US energy bill, which has be voted upon by Friday if it is to pass before Congress breaks for its summer recess.

It would require the departments of defense and energy, along with other federal agencies, to take 120 days "to conduct a study on the implications of growing Chinese energy consumption before any Chinese takeover of US energy assets can continue", House energy committee spokeswoman Jennifer Zuccarelli said.

Unocal shareholders are set on August 10 to vote on a rival takeover offer from US oil major Chevron Corp. which has the Unocal board's backing.

Should the Congress amendment go through, that would be likely to weigh heavily on the shareholders' minds as they decide whether to countenance a bid from China that has run into such fierce political opposition.



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