This article is 21 years old. Images might not display.
Unocal is the ninth-biggest US oil company in terms of reserves and has a stromng portfolio of oil and gas assets in Southeast Asia.
The Financial Times said CNOOC was considering bidding more than US$13 billion for Unocal.
The newspaper reported that CNOOC had asked bankers to study a takeover of Unocal followed by a subsequent sale of the company's US assets.
It said contacts between the companies were at an early stage and detailed talks had yet to take place.
Wall Street Journal also reported CNOOC was pondering a takeover of Unocal. But it said that its interest was "highly preliminary" and cited no possible price.
Both newspapers cited anonymous sources.
China's Xinhua news agency said while the price tag for Unocal could be difficult for CNOOC to meet by itself, it would be able to draw “financial help” from the Chinese government and would gain from the proceeds of any disinvestment of Unocal’s US assets.
Unocal has a policy of refusing to comment about rumors, a company spokesman said in response to media reports.
China has a growing appetite for overseas investment and speculation recently circulated that CNOOC was planning to buy Shell's 34% stake in Woodside.
