press release

Unocal emergency team to work in Azerbaijan

Brea, Calif., June 28, 1996 -- Emergency Response Strike Team, Inc. (ERST), has won a contract with the Azerbaijan International Operating Company (AIOC) to further develop a corporate emergency preparedness and response plan, as well as train employees in emergency response.

The AIOC is a consortium of 11 foreign oil companies and the State Oil Company of the Republic of Azerbaijan, partnering in a $8 billion project to develop and produce oil and natural gas in the Caspian Sea. Three major oil fields have been identified, with reserves estimated at 540 million tons of oil, similar in size to a major North Sea field. Over the lifetime of the project, expected to be approximately 30 years, total oil profits could be worth $94 billion, 80 percent of which would go to the nation of Azerbaijan.

The AIOC represents the first major investment by Western multinational companies in any country of the former Soviet Union. The project includes construction of drilling and processing platforms, development wells, two sub-sea pipelines, onshore facilities and export pipelines to transport Caspian oil to international markets. Partial production will begin in 1997. Once complete by the year 2010, oil production is expected to reach nearly 700,000 barrels a day, about the rate of the North Sea Stratfjord Field.

ERST has been hired to further develop the AIOC's emergency preparedness and response plan, including policies, strategies, emergency preparedness and exercise guidelines, notification requirements, communication systems and support facilities. ERST will then conduct training for AIOC employees, based on the Incident Command System and fundamentals of crisis management. This will be followed by an emergency exercise to evaluate the effectiveness of the emergency response plan and the team.

ERST, Inc., President K. Tim Perkins said the AIOC project is particularly challenging due to its size and scope. "Since this is a new venture, it is a great opportunity to work with AIOC to build an effective emergency plan without any existing constraints or issues."

Perkins added that working with AIOC presents unique opportunities to achieve collaborations with different cultures. "It is a great experience to work with so many different organizations, people and cultures. Since the partner companies come from eight different nations, everyone has a different perspective on emergency response. It gives us all an opportunity to share, and to learn," he said.

Einar Tresselt, vice president of Health, Environment & Safety of AIOC, said ERST was selected because of its highly successful and experience-tested emergency preparedness programs. "ERST's reputation in this industry is outstanding," he said. "We're looking forward to having them apply their expertise and experience on this important venture."

ERST, Inc., is a wholly owned subsidiary of Unocal Corporation (NYSE: UCL). In addition to consulting and training on a wide variety of emergency management subjects, ERST provides emergency response management services for oil spills, hazmat incidents, fires, natural disasters and other incidents. Further information about ERST can be obtained by calling 800-730-7611.

Updated: June 1996