china

Encana Corp. and China National Petroleum Corp. (CNPC) late Thursday signed a memorandum of understanding (MOU), or heads of agreement, outlining a framework for the two companies to negotiate a potential joint venture investment to develop Encana’s natural gas plays in northeast British Columbia.

Singapore state investment fund Temasek Holdings Pte and private equity firm Hopu Investment Management Co. of Beijing, China, jointly plan to sink up to $1.1 billion in Chesapeake Energy Corp.

Houston-based independent Ultra Petroleum Corp., which explores for natural gas in the Green River Basin of Wyoming and offshore China, plans to file a 15-day automatic extension notification with the Securities and Exchange Commission relating to its Annual Report on Form 10-K for 2005 after identifying “certain deficiencies in its internal controls,” the company said in a statement. The extension will allow the company more time to prepare its consolidated financial statements and the work required to complete management’s assessment of internal controls over financial reporting in accordance with Section 404 of Sarbanes-Oxley and the rules of the Public Company Accounting Oversight Board. Ultra said it will disclose weaknesses in its financial reporting system and related remediation activities in its Form 10-K. Ultra expects to make its filing by March. 31.

Speculation was growing Friday that China Offshore Oil Co. Ltd. (CNOOC) was only waiting for Congress to recess before boosting its bid for Unocal and announcing a U.S. partner to take over its U.S. assets.

Speculation was growing Friday that the China Offshore Oil Co. (CNOOC) was only waiting for Congress to recess before either dropping its attempt to purchase Unocal Corp. or raise the stakes and announce a U.S. partner to take over its U.S. assets.

Chevron Corp., in a tug of war with the China Offshore Oil Co. (CNOOC) to take over asset-rich Unocal Corp., on Friday reported a drop of nearly 10% in 2Q2005 income, following lower earnings from its exploration and production (E&P) unit and its refining businesses. Worldwide, Chevron’s oil and natural gas production also fell, with North American output down 15%.

Unocal Corp.’s board of directors has endorsed an increased takeover offer of $17 billion from Chevron Corp., potentially ending the fierce bidding war by China’s National Offshore Oil Co.(CNOOC) for the U.S. oil and natural gas company.

China National Offshore Oil Corp. (CNOOC) apparently is still mulling whether to make an offer for Unocal Corp., which could challenge the $16.4 billion offer made by ChevronTexaco Corp. in April (see Daily GPI, April 5).