China's CNOOC Ltd will consider raising its $18.5 billion takeover bid for U.S. oil producer Unocal, the Financial Times reported on Wednesday citing people familiar with the matter.

The paper said CNOOC's board was expected to approve changes to the bid, including giving management permission to raise the takeover offer above the $67 per share in cash already offered. CNOOC's bid tops a $16 billion offer from Chevron Corp, although it faces numerous regulatory and political hurdles.

Investor and analysts expect that Unocal will press Chevron to lift its offer or risk losing its support for the deal. The Unocal board is due to meet this week to discuss the takeover offers.

Source: China Daily