Chinese oilman goes global with Unocal bid

Chinese oilman goes global with Unocal bid

Bidding war seen erupting over Unocal -analysts
Reuters - 3 hours ago
By Jessica Hall. PHILADELPHIA, June 27 (Reuters) - The takeover battle for Unocal Corp. (UCL.N: Quote, Profile, Research) will likely ...
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Letter from CNOOC to the US Congress
http://news.ft.com/cms/s/7624beca-e755-11d9-a721-00000e2511c8.html
Published: June 27 2005 22:52 | Last updated: June 27 2005 22:52

Fu Chengyu

CNOOC Limited

Chairman CEO

June 27, 2005

Dear Member of Congress:

Since CNOOC announced our proposed offer for Unocal, concerns have been expressed regarding important issues surrounding this transaction. I understand the importance of these issues and wanted to write you personally to stress the key commitments that are an integral part of our friendly and open offer for Unocal.

CNOOC Limited extended an all cash purchase offer to Unocal's board of directors after engaging in a friendly dialogue with Unocal earlier this year. We made the offer because Unocal had begun a sale process and Unocal's asset base, 70 percent of its oil and gas reserves are close to Asian markets where we operate, fits our business well and offers value to our shareholders. We are listed on the New York Stock Exchange and the Hong Kong Stock Exchange and we exist to bring value to all of our shareholders.

We had planned for and want to participate in a CFIUS review of the transaction as soon as possible. We believe it is vital to the success of the possible merged company. We have also proactively made assurances to Unocal addressing concerns relating to energy security and ownership of Unocal assets located in the United States and will do so as part of any CFIUS review.

We have also committed that substantially all of the oil and gas produced by Unocal in the U.S. will continue to be sold in the U.S. should a merger occur. It is important to note, Unocal's U.S. oil and gas production currently accounts for less than 1% of total U.S. oil and gas consumption. Furthermore, the combined company will enhance the development of resources currently held by Unocal in the Gulf of Mexico.

I would like to reiterate our commitment to retain the jobs of substantially all of Unocal's employees, including those in the U.S. We value them and the expertise they bring to U.S. operations. Our two companies have worked together in the past and believe there will be increased opportunities moving forward.

We believe this bid brings superior value to Unocal shareholders.

We welcome a discussion of the important issues surrounding CNOOC's bid for Unocal. We know this bid is historic for both companies and will be closely scrutinized by everyone involved. I want you to know we encourage that review and welcome the opportunity to participate.

Finally, when the company's board authorized the offer for Unocal, I knew the transaction would create great interest and debate. I am a firm believer this transaction will create value for both companies and combines the talents of an American and Chinese company.

Thank you.

Sincerely,

Fu Chengyu
Chairman and CEO

CNOOC Limited

Statement by Fu Chengyu, Chairman and CEO of CNOOC Limited ... In preparing our
bid, CNOOC Limited always anticipated that our merger with Unocal would be ...
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