CNOOC Chairman Makes Statement
Fu Chengyu Chairman and CEO of CNOOC Limited had the following statement to make regarding the Unocal Acquisition: "We are extremely pleased that Unocal has indicated today they will begin engaging in talks concerning our all cash offer. We are prepared to start immediately. As we indicated upon announcing our bid, we believe this offer brings superior value to Unocal shareholders. It is important to know that 70 percent of Unocal's current reserves are located in Asia, and that is one of the reasons why this transaction makes sound business sense for our company. Substantially all of the oil and gas produced by Unocal in the U.S. will continue to be sold in the U.S. The development of properties in the Gulf of Mexico will provide further supplies of oil and gas for American markets. I want to re-emphasize our commitment to retain the jobs of substantially all of Unocal's employees, as opposed to Chevron's plan to lay off employees, especially in the United States.
In preparing our bid, CNOOC Limited always anticipated that our merger with Unocal would be reviewed by the Committee on Foreign Investment in the US (CFIUS). We are fully prepared to participate in a CFIUS review of the transaction and we have proactively made assurances to Unocal to address concerns relating to energy security and ownership of Unocal assets located in the United States.
CNOOC Limited has said that we are prepared to sell or take other actions with respect to Unocal's minority pipeline interests and storage assets so long as such a sale does not cause substantial economic harm to Unocal, and we will reiterate this commitment to the CFIUS committee when appropriate. We are also open to discussing with CFIUS placing non-E&P assets under American management through arrangements that CFIUS has approved often in the past.
We are prepared to enter into talks with the CFIUS committee to discuss these issues as soon as the committee is ready to do so."
CNOOC Limited is advised by Goldman Sachs (Asia) L.L.C. and J.P. Morgan Securities (Asia Pacific) Ltd. N M Rothschild & Sons (Hong Kong) Limited also assisted the board's non-executive directors in their review of the transaction.
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