Snow says US government to review deal between CNOOC, Unocal

The Bush government would review the takeover deal between a Chinese oil producer and the US oil company Unocal Corp for national security considerations, Treasury Secretary John Snow said Thursday.

"It's hypothetical at this point because we don't have a transaction," said Snow while testifying at a congressional hearing on China's trade and currency practices.

"I would fully contemplate that the parties would want to avail themselves of that process. That is normally what happens on a voluntary basis," he added.

China National Offshore Oil Corporation (CNOOC), the nation's third largest oil producer, made a bid of 18.5 billion dollars for Unocal Corp. on Thursday.

Calling it a friendly bid, CNOOC Chairman and CEO Fu Chengyu said that national security was not an issue, according to reports reaching here.

"This transaction is purely a commercial transaction," he said in a conference call with reporters. "We are confident that the US government will support this project."

Source: Xinhua