Manila, Oct. 5, 2004 -- Philippine Geothermal Inc. (PGI), Southeast Asia's pioneer geothermal developer, announced it began doing business as Unocal Philippines, Inc. (UPI), effective Oct. 1, 2004. This new name better links the company with parent company Unocal Corporation's other worldwide operations. UPI remains an indirect wholly-owned Unocal subsidiary, reflecting the company's long-term commitment to the Philippines and the region.
UPI builds on a strong legacy. This includes more than 33 years of partnership with the Philippine government to pioneer geothermal development and meet the growing energy needs of the country. The Philippines now enjoys the distinction of being the world's leading consumer of geothermal energy, and the second leading producer of this clean, renewable energy source, behind the United States. The name change is timed to coincide with the beginning of an important new commercial agreement that is now in place, representing the settlement between UPI, PSALM and NPC resolving an eight-year dispute over the operations of the Tiwi and Mak-Ban geothermal steam fields.
"UPI represents Unocal's long-term commitment to our host country, and serves as a platform to become the leading energy resource and project development company in the Philippines," said Luli Heras-de Leon, UPI's executive vice president for Commercial Affairs.
With the growing need for alternative sources of energy to fuel the Philippine's energy requirements, UPI will harness its global reach and experience in creating resource-to-market solutions in geothermal energy, natural gas and the power sector.
UPI is currently managing a US $26 million capital project to enhance the steam field capabilities in both Tiwi and Mak-Ban. The projects include upgrades to facilities and new drilling to ensure the sustained and long-term commercial production of this clean, reliable, and affordable energy source.
As a committed corporate citizen, UPI has invested more than PHP275 million in community programs over many years, supporting improved infrastructure, education, health, environment and safety, community fellowship, entrepreneurship and livelihood.
"Our corporate responsibility programs align with the standards set by the Philippine Business for Social Progress, and are carried out in full partnership with our host local governments, NGO's, other private entities, and community residents to achieve genuine sustainable development," said Heras-de Leon.
Unocal Philippines, Inc., is an indirect wholly-owned subsidiary of Unocal Corporation, one of the world's leading independent natural gas and crude oil exploration and production companies. The company's principal oil and gas activities are in Asia and North America. Unocal is also one of the world's largest producers of geothermal energy, with operations in the Philippines and Indonesia.
This news release contains forward-looking statements about matters such as UPI's geothermal and other activities and plans in the Philippines. Although these statements are based upon UPI's current expectations and beliefs, they are subject to known and unknown risks and uncertainties that could cause actual results and outcomes to differ materially from those described in, or implied by, the forward-looking statements, including local demand for geothermal energy; volatility in commodity prices; UPI's ability to develop and produce geothermal resources in a timely and cost-effective manner; adverse geological and other operational factors; the extent of UPI's operating cash flow and other capital resources available to fund its capital expenditures; international and domestic regulatory, political, and economic factors; negotiations with, and performance by, foreign government entities and other third parties; and other risks and uncertainties discussed in Unocal's 2003 Annual Report on Form 10-K, as amended, and subsequent reports filed by Unocal with the Securities and Exchange Commission (SEC File No. 1-8483). Copies of Unocal's SEC filings are available from Unocal by calling 800-252-2233 or from the SEC by calling 800-SEC-0330. The reports are also available on the Unocal web site. Unocal undertakes no obligation to update the forward-looking statements in this news release to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.