press release

Construction alliance formed by Unocal Thailand, Clough and Unithai

Bangkok, July 7, 2000 -- Unocal Thailand today announced the recent formation of a long-term contractual relationship with Clough Thailand Co., Ltd., and Unithai Shipyard and Engineering Ltd., two major Thailand-based construction companies.

The "UCU Alliance" integrates Unocal Thailand's wellhead platform construction group into a new organization which will design, procure, fabricate, and install wellhead platforms and submarine pipelines.

The UCU Alliance will carry out Unocal Thailand's wellhead platforms and submarine pipeline work within a shared risk/reward framework.

The parties within the alliance will work to maintain and improve upon Unocal Thailand's record for delivering low-cost platforms and submarine pipelines. The new relationship will also provide the company additional flexibility and responsiveness in meeting the demands of the marketplace.

In announcing the formation of the alliance, Randy Howard, Unocal Thailand president, said, "The UCU Alliance represents an improved business model for Unocal in providing services and facilities for our regional development programs. The alliance agreement is built on a solid foundation of shared values, enthusiasm and a commitment to excellence and innovation. We look forward to working with our new partners to achieve our aligned objectives and for all the alliance parties to benefit from this long-term relationship."

"The UCU Alliance provides another example in which Clough has joined with companies representing excellence in their own fields of endeavor to create new value through integrated and empowered teamwork," said Rob Jewkes, Clough Engineering chief executive officer. "Clough has been a strong advocate of relationship contracting and we are pleased to be working with companies such as Unocal and Unithai to set a new benchmark in engineering and construction in the region."

"The UCU Alliance represents a paradigm shift for the fabrication industry in Thailand which will break the mold of traditional, adversarial contracting," added Gerrit de Nys, Unithai Shipyard and Engineering chief executive officer. "Unithai is pleased to be at the forefront of this construction revolution which will yield improved results through lower costs, increased efficiency, and better safety and quality management."

Unocal Corporation is a leading independent petroleum exploration and production company with pipeline and power plant development projects worldwide. Along with its co-concessionaires, Unocal Thailand explores, develops, and operates gas/condensate fields in the Gulf of Thailand. The company sells its natural gas and condensate to the Petroleum Authority of Thailand (PTT) under long-term contracts. To meet its gas supply commitment, Unocal Thailand continues to regularly drill exploration and delineation wells, and continually installs new wellhead platforms and submarine pipelines in water depths ranging from 180 feet to 240 feet.

Clough Thailand Co., Ltd is a subsidiary of Clough Engineering Ltd., one of Australia's largest multidisciplinary engineering and construction organizations. Clough Engineering operates globally in a variety of industrial sectors, serving private and government clients, including major companies in onshore and offshore oil and gas, petrochemicals, mining, infrastructure and manufacturing. Clough owns offshore equipment and specializes in project management and offshore engineering and construction.

Unithai Shipyard and Engineering, Ltd. is a member of the Unithai Group of Companies, which is part of the IMC Pan Asia Alliance Group. IMC is a regionally based organization involved in shipping, distribution, logistics, engineering and infrastructure development. Unithai Shipyard and Engineering, Ltd owns and operates a ship repair and heavy fabrication facility at Laem Chabang on Thailand's Eastern Seaboard.

Updated: July 2000