press release

Unocal acquires 30% interest in Transandean Oil Pipeline

El Segundo, Calif., Dec. 23, 1996 -- Unocal Corporation today said its Unocal Argentina, Ltd. subsidiary has purchased a 30-percent sharehold interest in the 265-mile Transandean Oil Pipeline, which transports crude oil from Argentina to Chile.

Unocal purchased the interest from Inter-Rio Holdings, the primary lender responsible for financing construction of the pipeline. Sales price was not disclosed.

The Transandean Oil Pipeline, which has a capacity of 115,000 barrels of oil per day (bopd), ships an average of 97,000 bopd from the Neuquen Basin of Argentina to storage facilities, a refinery and loading terminals located on the coast of Chile near the city of Concepcin.

"This acquisition marks Unocal's strategic entry into Latin America, in particular the MERCOSUR market -- an area of significant economic growth and potential," said Graydon Laughbaum, vice president, New Ventures, East Asia/Latin America. "It is a low-risk, high-return opportunity that builds on Unocal's long-term strategy of investing in projects that connect growing markets to known energy resources."

Laughbaum added, "The Transandean Oil Pipeline gives us access to an established energy project with an immediate cash flow. It will also provide additional opportunities for Unocal to expand into other resource- or market-related projects."

The pipeline, which was completed in February 1994, is operated by two separate companies: Oleoducto Trasandino Argentina, S.A. and Oleoducto Trasandino Chile, S.A. Both operating companies are held by A&C Pipeline Holding Company.

The remaining sharehold interests are owned by YPF, S.A. (57.75%) (NYSE: YPF) and Empresa Nacional del Petroleo (ENAP) (12.25%) of Chile.

Updated: December 1996