CNOOC firestorm surprised Unocal

When Unocal Corp chief executive Chuck Williamson first discussed a possible sale to the Chinese oil and gas company CNOOC Ltd (中國海洋石油) last December, he and his CNOOC counterpart, Fu Chengyu (傅成玉), knew there would be political repercussions.

What they didn't count on was the firestorm that would eventually scuttle any deal between the two companies and clear the way for Chevron Corp to buy Unocal in a stock and cash deal valued at approximately US$18 billion.

"This touched a nerve," Williamson said on Wednesday after Unocal shareholders voted overwhelmingly to approve the Chevron takeover.

"It really became a platform in my mind for much more complex and greater China-United States issues than just CNOOC and Unocal. That we did not anticipate," Williamson said.

Late on Wednesday, Unocal ceased to exist as an independent company and its shares were delisted from the New York Stock Exchange. The new company will simply be known as Chevron Corp, with headquarters in San Ramon, California.

Williamson will remain with Chevron for a few months to help with the transition as thousands of Unocal employees consider job offers from their new employer.

Unocal announced that holders of 77.2 percent of eligible shares favored the Chevron buyout and 2.6 percent were opposed. Of the shares actually voted, 96.6 percent approved the deal.

The combined companies will produce the equivalent of 2.8 million barrels of oil per day and the acquisition will increase Chevron's reserves by about 15 percent, Chevron said in a press release.

CNOOC's bid caused a political uproar, and was clearly on the minds of about 100 Unocal shareholders and employees gathered at a hotel for the final vote. Several expressed patriotic pride in Unocal being sold to a US company, while some suggested the company may have sold too soon and wondered whether the Chinese company ever had a shot.

"Chevron is a fine company. They have a global perspective. They have comparable values,"Williamson told the shareholders. "I hope you continue to support Chevron like you have Unocal."