A fellow competitor Chevron has offered to buy Unocal over a Chinese company. This bid looks attractive to Capitol Hill since there are some concerns about Unocal being potentialy bought by a Chinese goverment owned company CNOOC. CNOOC is prepared to pay billions in cash. Some members of Congress had regulatory concerns as well as national security issues. Unocal is an oil company and has a subsidary in missile technology. The federal goverment has the authority to block the sale of a company or the sale of products or services to a foreign company or government if they believe there are potential issues of national security. Defense contractors are usually required to submit documents before selling to foreign governments since we dont want our companies to sell military technology to countries not friendly to the United States.
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