109th CONGRESS
1st Session
S. 1412
To prohibit the merger, acquisition, or takeover of Unocal Corporation
by CNOOC Ltd. of China.
IN THE SENATE OF THE UNITED STATES
July 15, 2005
Mr. DORGAN introduced the following bill; which was read twice and referred
to the Committee on the Judiciary
A BILL
To prohibit the merger, acquisition, or takeover of Unocal Corporation
by CNOOC Ltd. of China.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress makes the following findings:
(1) Oil and natural gas resources are strategic assets critical to national
security and the Nation's economic prosperity.
(2) The National Security Strategy of the United States approved by President
George W. Bush on September 17, 2002, concludes that the People's Republic
of China remains strongly committed to national one-party rule by the Communist
Party.
(3) On June 23, 2005, the China National Offshore Oil Corporation Limited
(CNOOC), announced its intent to acquire Unocal Corporation, in the face
of a competing bid for Unocal Corporation from Chevron Corporation.
(4) The People's Republic of China owns approximately 70 percent of CNOOC.
(5) A significant portion of the CNOOC acquisition is to be financed and
heavily subsidized by banks owned by the People's Republic of China.
(6) Unocal Corporation is based in the United States, and has approximately
1,750,000,000 barrels of oil equivalent, with its core operating areas in
Southeast Asia, Alaska, Canada, and the lower 48 States.
(7) A CNOOC acquisition of Unocal Corporation would result in the strategic
assets of Unocal Corporation being preferentially allocated to China by
the Chinese Government.
(8) A Chinese Government acquisition of Unocal Corporation would weaken
the ability of the United States to influence the oil and gas supplies of
the Nation through companies that must adhere to United States laws.
(9) As a de facto matter, the Chinese Government would not allow the United
States Government or United States investors to acquire a controlling interest
in a Chinese energy company.
SEC. 2. PROHIBITION ON SALE OF UNOCAL TO CNOOC.
Notwithstanding any other provision of law, the merger, acquisition, or takeover
of Unocal Corporation by CNOOC is prohibited.
END
