press release

Texas court dismisses lawsuit against Unocal; judge says no cause of action by Bridas

Sugar Land, Texas, Oct. 5, 1998 - Unocal Corporation today said that the Texas District Court in Fort Bend County has granted the company's request for summary judgement and dismissed the lawsuit filed by Bridas Corporation.

"We are pleased that the court has granted our request," said Roger C. Beach, Unocal chairman and chief executive officer. "From the outset, we have maintained that we did not interfere with Bridas' business and it was inappropriate for them to sue Unocal in the United States concerning business activities in Turkmenistan and Afghanistan."

Judge Brady Elliott in his decision issued Oct. 2 said that any dispute between Unocal and Bridas was governed by the laws of Turkmenistan and Afghanistan rather than Texas law.

In February 1996, Bridas filed a petition against Unocal and others alleging that the defendants interfered with Bridas' rights under agreements with the government of Turkmenistan to develop the Yashlar field and to transport natural gas from that field to Pakistan.

"We have always maintained that this case was totally without merit," Beach said. "Unocal operates around the world under a set of values that recognize the political, economic and cultural rights of our host countries, while maintaining the honesty and integrity necessary for successful global relationships."

Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.

Updated: October 1998