Chinese oil firm CNOOC withdraws $18.5B bid for Unocal, cites politics

China’s CNOOC Ltd. said Tuesday it has withdrawn its $18.5-billion-US cash offer for Unocal Corp., stating it considered raising its bid, and “would have done so but for the political environment in the U.S.”

CNOOC’s withdrawal frees the way for Chevron Corp. to clinch its $17.4-billion bid for El Segundo, Calif.-based Unocal.