Chinese oil company considers making bid for U.S. rival Unocal

NEW YORK - China's third biggest oil and natural gas company is considering making a bid for all or part of U.S. rival Unocal Corp., published reports said Jan. 7. If true, it would be the latest indication of China's rising appetite for overseas investment.

The Financial Times said that China National Offshore Oil Corp. was considering a bid or more than $13 billion for all of Unocal, which is based in El Segundo, Calif., and is the ninth biggest U.S. oil company in terms of reserves.

Unocal shares rose 49 cents, or 1.1 percent, to $44.63 in early trading Jan. 7 on the New York Stock Exchange, giving the company a market value of about $11.75 billion.

The newspaper said the state-controlled Chinese company, also known as CNOOC, had asked bankers to study a takeover of the whole company followed by a subsequent sales of the U.S. assets.

It said the contacts between the companies were at a very early stage and that detailed talks had yet to take place.

The Wall Street Journal, which reported CNOCC was eyeing Unocal, said its interest was "highly preliminary" and cited no possible price. The newspaper said Unocal has an attractive array of oil and gas assets in Southeast Asia.

The reports each cited sources who were not identified by name.

China's economy has been growing rapidly and its expansion has driven up its demand for foreign oil and other commodities and its interest in foreign consumer markets.

Last month, Lenovo Group, China's biggest computer maker, said it was buying International Business Machines Corp.'s personal computer business for $1.25 billion and would assume $500 million in debt.

- The Associated Press

Louisiana likely to see natural gas terminals in 2005

Southwest Louisiana in 2005 likely will see development of perhaps the nation's biggest concentration of liquefied natural gas receiving terminals, with two projects slated for construction and a third starting the permit process.

Sempra Energy, a San Diego-based energy holding company, announced in early January it has retained Norwegian and Japanese contractors to build a terminal capable of receiving 1.5 billion cubic feet per day of liquefied natural gas at Hackberry, La., about 15 miles south of Lake Charles, La..

Sempra spokesman Art Larson said the construction permit from the Federal Energy Regulatory Commission is the first new authorization for such a terminal in more than 20 years.

Larson said Sempra won't have a construction date until it secures a final supply agreement for the liquefied natural gas.

He said Sempra's authorization preceded the permit Cheniere Energy received to build a terminal in western Cameron Parish, La., along the Sabine-Neches Ship Channel.

That project should begin in March.

Sempra's project in Hackberry will cost about $700 million and if construction begins this year, it should become operational in 2008.

Sempra also is pursuing a permit for a similar terminal in Port Arthur that would cost about $600 million to develop.

Larson said construction in Jefferson County should begin in 2006 with operations starting in 2009.

- KRT Business News