Who will get Unocal? Maybe both Chevron and CNOOC

As the battle between China’s CNOOC Ltd. and Chevron Corp. to buy Unocal (UCL.N: Quote, Profile, Research) drags on, speculation is emerging that they may eventually agree to carve up the U.S. producer.

By splitting up some of Unocal’s assets, such as stakes in its Indonesian natural gas fields, CNOOC (0883.HK: Quote, Profile, Research)(CEO.N: Quote, Profile, Research) and Chevron (CVX.N: Quote, Profile, Research) can avoid a bidding war that could make Unocal too expensive for either of the bidders, some observers say.