China National Offshore Oil Corp.(CNOOC) Denied Friday that its chairman, Fu Chengyu, told the Shanghai Securities News the company was looking at US$1 billion in non-core assets held by former Russian oil giant Yukos.

CNOOC Corp. is the unlisted parent of Hong Kong-listed CNOOC Ltd. (HK: 0883).

CNOOC Corp. said on its Web site that none of its executives had told the media the company was interested in the Yukos assets.

"It doesn't mean we are not interested in the (Yukos) assets, just that we haven't told any reporter about this. We may have an interest in the assets in the future," said a company source, who asked not to be named.

Fu was quoted in the Shanghai Securities News report as saying he was interested in US$1 billion in non-core assets Yukos is liquidating to pay off its remaining tax bills, but any move would require "the decision and coordination of the governments," referring to China and Russia. CNOOC Corp. said it may take legal action over the report.

The CNOOC group has been actively seeking overseas acquisition targets for its oil and liquefied natural gas operations to meet China's energy demand. As China imports about 40 percent of its oil needs, high international oil prices have pushed the country's cash-rich oil giants to actively search for upstream assets overseas to control their costs, analysts said.

(Shenzhen Daily December 12, 2005)