[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1412 Introduced in Senate (IS)]







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.
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