press release

First sale of greenhouse emission credits from Indonesia offsets impact of World Economic Forum meeting in New York

Jakarta, Indonesia, Feb. 1, 2002 - Unocal Corporation's (NYSE: UCL) Unocal Geothermal Indonesia, Ltd. (UGI) subsidiary, PT. PLN (PERSERO) and PERTAMINA (P.PTM) today announced the first sale of greenhouse gas (GHG) emission reduction credits from Indonesia.

The sale involved GHG emission reduction credits from Units 4, 5 and 6 of the Gunung Salak Geothermal Project on the Island of Java to the World Economic Forum (WEF). The credits will offset emissions associated with the WEF annual meeting, which opened yesterday in New York City. The sale will make the WEF meeting "GHG emissions neutral."

The 362-megawatt Gunung Salak Geothermal Project emits approximately 2.6 million tons per year less carbon dioxide than a comparable-sized coal-fired electrical generating plant. The WEF sale involved 4,000 metric tons of carbon dioxide-equivalent emissions reductions.

Dr. Hardiv Situmeang, director of planning for PLN, said that this initial transaction with the WEF demonstrates to Indonesia and others that such emission transactions are possible.

Irzawadi Agus, general manager of PERTAMINA Geothermal, echoed the importance of this first sale for Indonesia. "This transaction demonstrates that the environmental benefits associated with geothermal operations can be valued, thus improving the prospects for future geothermal development in Indonesia," he said.

"This pilot-scale transaction for GHG emissions reduction not only helps to reduce the environmental impact of power generation, but it encourages using clean, environmentally preferable resources," said Bradley Govreau, UGI vice president and general manager. "The economic benefits of such projects contribute to Indonesia's long-term economic growth."

UGI produces geothermal steam from the Salak field on behalf of PERTAMINA to supply six power plants. The first two geothermal power plants, owned and operated by PLN, went online in 1994. Four more units -- three operated by an affiliate of UGI and the fourth operated by PLN -- entered commercial service in 1997.

Indonesia has an estimated geothermal energy potential of approximately 20,000 MW. Indonesia's electricity consumption has more than doubled during the past decade. Unocal and PERTAMINA's oil and gas operations also have an ongoing program to cut CO2 emissions by reducing gas flaring.

A representative from Unocal's geothermal business unit participates as an Indonesia delegate to the UN Framework Convention on Climate Change. In addition, Unocal's and PERTAMINA's partially developed geothermal project at Sarulla on the Island of Sumatra has been recognized by the Government of Indonesia as a climate change mitigation priority project.

Natsource LLC brokered the transaction.

The World Economic Forum is an independent organization committed to improving the state of the world by furthering economic growth and social progress. The theme of the 2002 annual meeting is "Leadership in Fragile Times: A Vision for a Shared Future." For more information about the WEF, visit its web site at www.weforum.org.

About Unocal Corporation

Unocal is one of the world's leading independent natural gas and crude oil exploration and production companies. Unocal's principal oil and gas operations are located in North America (Gulf of Mexico region, Permian Basin, Alaska and Canada) and in Asia (Thailand, Myanmar, Indonesia, Bangladesh and Azerbaijan). The company is also pursuing exploration programs in Brazil and West Africa. Unocal is one of the world's largest producers of geothermal energy with operations in the Philippines and Indonesia.

About PLN

PLN, Indonesia's state-run electricity company, owns and controls all public electricity infrastructure in Indonesia, including power generation, transmission, distribution and retail sale of electricity. PLN directly owns more than 20,000 MW of power generation capacity. PLN also buys electricity from private power producers under long-term purchase agreements. (See www.pln.co.id/english)

About PERTAMINA

PERTAMINA, Indonesia's state-run resources company, is responsible for developing oil, gas and geothermal resources. The Geothermal Energy Division of PERTAMINA cooperates with private contractors under joint operation contracts to develop and operate geothermal projects and also operates geothermal fields on its own behalf. (See www.pertamina.com/english)

Updated: February 2002