press release

Unocal adds GOM leases in OCS sale

Sugar Land, Texas, March 20, 2002 - Unocal Corporation (NYSE: UCL) today said that its Gulf Region USA and Deepwater USA business units are the apparent high bidders for interests in 18 blocks in the Central Gulf of Mexico OCS Lease Sale No. 182 conducted today by the U.S. Minerals Management Service (MMS).

The company submitted apparent high bids amounting to approximately $5.9 million on 16 shelf leases and 2 deepwater leases. (See table for detailed bid information).

Ken Butler, vice president for Unocal Gulf Region USA, said that the "deep shelf" gas play was the primary focus of bids placed in the shallower waters, in addition to more traditional "bright spot" prospects that favor the company's existing acreage position. "Both the deep shelf and shallow bright spot targets allow us to take advantage of our proven operating strengths and extensive infrastructure in the Gulf of Mexico," Butler said.

"Some prospects that we bid on will yield immediate drillsites and could contribute production and reserves this year. Other leases support Unocal's deep shelf focus and could add material gas reserves and drilling prospects into 2003," he added.

Prior to the sale, Unocal, through its Deepwater USA and Gulf Region USA units, held an interest in 488 Gulf of Mexico leases. Of that total, 235 exploratory leases are located in deep water, while another 105 exploratory leases are on the shelf. Unocal Gulf Region USA also has 148 development leases on the GOM shelf.

The results of Sale 182 will bring the Unocal business units' combined portfolio to 506 OCS leases in the Gulf of Mexico, if all bids are approved by the MMS.

About Unocal Corporation

Unocal is one of the world's leading independent natural gas and crude oil exploration and production companies. The company's oil and gas activities are in North America, Asia, Latin America, the North Sea, and West Africa. Unocal is one of the world's largest producers of geothermal energy with operations in the Philippines and Indonesia.

Apparent High Bids by Unocal (100% W.I.) Central Gulf of Mexico Lease Sale No. 182 - March 20, 2002

Area/Block Bid Amount ($)
W Cameron, W Add Block 337 140,388
E Cameron Block 80 215,983
E Cameron, S Add Block 250 215,983
Vermilion, S Add Block 290 161,987
S Marsh Island Block 12 140,389
S Marsh Island, S Add Block 119 140,389
S Marsh Island, S Add Block 121 140,389
Eugene Island Block 10 539,957
Eugene Island, S Add Block 270 172,786
Eugene Island, S Add Block 384 161,987
Eugene Island, S Add Block 389 161,987
Ship Shoal, S Add Block 244 183,585
Ship Shoal, S Add Block 308 1,295,896
S Timbalier Block 25 539,957
S Timbalier Block 58 863,931
S Timbalier Block 83 183,585
Green Canyon Block 437 253,760
Green Canyon Block 481 405,760
Total 5,918,699

Updated: March 2002