press release

Unocal Adjusted Fourth Quarter Earnings Rise 63% to $150 Million

EL SEGUNDO, Calif., Jan. 23, 1997 -- Unocal Corporation today reported that preliminary fourth-quarter 1996 consolidated earnings, excluding special items, rose 63 percent to $150 million or 60 cents per common share. This compares with $92 million or 34 cents per common share reported on the same basis for 1995.

Preliminary full-year 1996 earnings, excluding special items, were $628 million, or $2.45 per common share, up 111 percent from $297 million, or $1.06 per common share, in 1995.

Earnings from continuing operations, excluding special items, were $160 million, or 64 cents per share, for the fourth quarter, and $562 million, or $2.19 per share, for the full-year 1996.

Total revenues from continuing operations for the fourth quarter were $1.38 billion, up from $1.16 billion in the same period of 1995. For the full-year 1996, revenues from continuing operations were $5.33 billion, up from $4.39 billion the year before.

Earnings and revenues from continuing operations for 1996 and 1995 exclude the results of Unocal's 76 Products Company business unit due to the pending asset sale.

"This was truly a breakthrough year for Unocal," said Roger C. Beach, Unocal chairman and chief executive officer. "We recorded our strongest operating performance in many years from our upstream operations and made significant progress in realigning the company's assets so we can continue to grow for the future."

Beach noted that during 1996 Unocal completed the sale of its California oil and gas properties and reached agreements to sell its West Coast refining, marketing and transportation assets and to restructure its UNO-VEN refining and marketing partnership in the Midwest.

"The steps we took this year will give us the focus and flexibility we need to take advantage of our many new growth opportunities in Asia and the U.S. Gulf Coast region," Beach said. Once the sale of our 76 Products Company assets is completed, we expect to initially redeploy the proceeds into reducing our debt and buying back some of our common stock. Over time, we will focus on investing in new, higher return opportunities, primarily overseas, but also in the U.S. Gulf Coast."

Unocal's fourth quarter 1996 operating earnings benefited from higher crude oil and natural gas prices as well as increased foreign oil and gas production. These operating gains were offset partially by increased depreciation and depletion expense.

The company's average worldwide natural gas sales price in the quarter was $2.49 per thousand cubic feet (mcf), up from $1.89 per mcf in 1995. Average sales price for crude and condensate was $21.85, up from $15.07 last year.

Beach added that the company's worldwide net natural gas production increased 7 percent in the fourth quarter to 1,909 million cubic feet per day (mmcfd), compared with the same period a year ago. "The major increase came in Thailand, which averaged more than 612 mmcfd (net) during the quarter," Beach said. He noted that gross production from Unocal's Thailand operations continued to set new records, reaching 1,070 mmcfd (approximately 700 mmcfd net to Unocal) in late December and early January. In addition, U. S. Gulf Coast gas production from Unocal's Spirit Energy 76 unit this month has reached 730 mmcfd (net), up more than 4 percent from the first quarter last year.

The company's agricultural products business unit continued with record earnings performance for the second straight year. Full-year earnings for this unit were $98 million, 40 percent above last year's results, on higher sales volumes and record production levels.

Unocal's total debt fell to $3,058 million, down $648 million from the end of 1995.

Cash flow from operations in the fourth quarter, before working capital changes, was $399 million, up from $373 million last year. For the full year, cash flow from operations, before working capital changes, was nearly $1.7 billion, up 37 percent from 1995. The improvement reflects increased operating earnings.

Including special items and discontinued operations, Unocal reported a loss of $497 million, or $1.98 per share for the fourth quarter 1996. On the same basis, full-year 1996 earnings were $36 million, or 7 cents per common share. This compares with reported earnings of $49 million, or 16 cents per share, in the fourth quarter 1995, and $260 million, or 91 cents per share, for the full-year 1995.

 UNOCAL CORPORATION
     CONDENSED CONSOLIDATED EARNINGS STATEMENT
     (UNAUDITED
                                              For the             For the
                                           Three Months       Twelve Months
     Dollars in millions except         Ended December 31    Ended December 31
       per share amounts                   1996       1995      1996      1995

     Total revenues                    $1,384    $1,161    $5,328    $4,389
     Costs and other deductions         1,363     1,083     4,570     3,914
     Earnings from continuing operations
       before income taxes                 21        78       758       475
     Income taxes                          18        45       302       226
     Net earnings from continuing
       operations                           3        33       456       249
     Earnings/(loss) from discontinued
       operations                         (9)        16        71        11
     Loss on disposal (a)               (491)        --     (491)        --
     Net earnings/(loss) from
       discontinued operations          (500)        16     (420)        11
     Net earnings/(loss)               $(497)       $49       $36      $260
     Dividends on preferred stock          --         9        18        36
     Net earnings/(loss) applicable
       to common shares                $(497)       $40       $18      $224
     Earnings/(loss) per common
       share assuming no dilution (b) (c)
         Continuing operations          $0.01     $0.10     $1.76     $0.87
         Discontinued operations       (1.99)      0.06    (1.69)      0.04
     Net earnings/(loss) per share    $(1.98)     $0.16     $0.07     $0.91

     (a)  Includes transition loss (net of tax) of:
          11/17/96 - 12/31/96           $(30)       $--     $(30)       $--
          1/1/97 - 3/31/97              $(42)       $--     $(42)       $--
     (b)  Based on weighted average common shares
     outstanding  (in millions)           250       247       249       246
     (c)  The effect of common stock equivalents is antidilutive
     for all reported periods.

     CONDENSED CONSOLIDATED BALANCE SHEET
     (UNAUDITED)
                                                              December 31
     Millions of dollars                                   1996           1995
     Assets
     Cash and cash equivalents                          $217            $94
     Net assets of discontinued operations  (d)        1,774             --
     Other current assets                              1,238          1,482
     Investments and long-term receivables             1,205          1,101
     Properties - net                                  4,590          7,109
     Other assets                                         99            105
        Total assets                                  $9,123         $9,891

     Liabilities and Equity
     Current portion of long-term debt and
       capital lease obligations                        $118             $8
     Other current liabilities                         1,504          1,308
     Long-term debt and capital lease obligations      2,940          3,698
     Deferred income taxes                               348            722
     Other deferred credits and liabilities            1,416          1,225
     Convertible preferred securities                    522             --

     Stockholders' equity                              2,275          2,930
        Total liabilities and equity                  $9,123         $9,891

     (d)  Excludes retained working capital.

     UNOCAL CORPORATION
     CONDENSED CONSOLIDATED CASH FLOWS
     (INCLUDES DISCONTINUED OPERATIONS)
     (UNAUDITED)
                                   For the Three Months  For the Twelve Months
                                       Ended December 31     Ended December 31
     Millions of dollars                   1996      1995      1996       1995
     Cash flows from operating activities
         Cash flow from operations       $399      $373    $1,698    $1,235
         Working capital and other changes
          related to operations            86       228      (14)        42
            Net cash provided by operating
              activities                  485       601     1,684     1,277

     Cash flows from investing activities
         Capital expenditures  (includes dry
           hole costs)                  (458)     (492)   (1,398)   (1,459)
         Proceeds from asset sales         24        74       609       204
           Net cash used in investing
             activities                 (434)     (418)     (789)   (1,255)

     Cash flows from financing activities
         Net increase/(decrease) in long-term debt
           and capital lease obligations  (8)     (194)     (568)       111
         Dividends paid                  (50)      (58)     (226)     (232)
         Other                            (1)       (5)        22        45
           Net cash used in financing
             activities                  (59)     (257)     (772)      (76)

     Increase/(decrease) in cash and cash
       equivalents  (a)                   (8)      (74)       123      (54)
     Cash and cash equivalents at
       beginning of period                225       168        94       148
     Cash and cash equivalents at
       end of period                     $217       $94      $217       $94

     (a)  Includes increase/(decrease) in cash and cash equivalents
       for discontinued operations of   $(12)       $53      $(9)    $(154)


     CONDENSED CAPITAL EXPENDITURES
     (UNAUDITED)

     Millions of dollars
     Domestic Exploration & Production    $91      $152      $418      $497
     Foreign Exploration & Production     194        97       509       353
     Geothermal & Power Operations         23        17       114        51
     Diversified Businesses                60        40        82        78
     New Ventures                           3         0         5         0
     Corporate & Unallocated               20        38        46        58
     Discontinued Operations               67       148       224       422
         Total                           $458      $492    $1,398    $1,459

     DEPRECIATION, DEPLETION & AMORTIZATION
     (UNAUDITED)
     Millions of dollars
     Depreciation, Depletion & Amortization
         Continuing operations           $297      $287      $914      $911
         Discontinued operations          $38       $31      $147      $111


     UNOCAL CORPORATION
     RESULTS OF OPERATIONS FOR
     EXPLORATION AND PRODUCTION ACTIVITIES
     (UNAUDITED)
                                For the Three Months    For the Three Months
                                      Ended                    Ended
                                   December 31, 1996      December 31, 1995
     Millions of dollars         Domestic Foreign Total Domestic Foreign Total

     Sales (includes intercompany sales)
       Crude oil and condensate $176     $162   $338    $161    $123   $284
       Natural gas               235      180    415     169     133    302
       Natural gas liquids        25        8     33      15       6     21
       Other                       1        0      1       1       0      1
         Total                   437      350    787     346     262    608
     Other revenue                16       11     27      62       5     67
     Gain/(loss) on asset sales (11)        0   (11)      48     (4)     44
         Total revenues          442      361    803     456     263    719

     Production costs             70       57    127      92      52    144
     Exploration expenses          7       26     33      13      40     53
     Dry hole costs               18       46     64       9       2     11
     Depreciation, depletion &
       amortization              184       70    254     163     118    281
     Other operating expenses     42       15     57      26      22     48
         Results of operations before
           income tax           $121     $147   $268    $153     $29   $182

                               For the Twelve Months   For the Twelve Months
                              Ended December 31, 1996  Ended December 31, 1995
                                Domestic Foreign Total  Domestic Foreign Total
     Sales (includes intercompany sales)
       Crude oil and condensate $672   $577  $1,249     $684  $486   $1,170
       Natural gas               858    577   1,435      598   453    1,051
       Natural gas liquids        76     23      99       66    19       85
       Other                       4      0       4        3     0        3
         Total                 1,610  1,177   2,787    1,351   958    2,309
     Other revenue                26     28      54      113    26      139
     Gain on asset sales         107     24     131       52     7       59
         Total revenues        1,743  1,229   2,972    1,516   991    2,507

     Production costs            300    208     508      394   181      575
     Exploration expenses         26     85     111       39    97      136
     Dry hole costs               67     64     131       36    21       57
     Depreciation, depletion &
       amortization              526    277     803      537   290      827
     Other operating expenses    155     49     204      124    72      196
         Results of operations
           before income tax    $669   $546  $1,215     $386  $330     $716


     UNOCAL CORPORATION
     RESULTS OF OPERATIONS FOR
     EXPLORATION AND PRODUCTION ACTIVITIES
     (RESTATED TO EXCLUDE MIDSTREAM NEW VENTURES EXPENSES)
     (UNAUDITED)
                                  For the Three Months    For the Three Months
                                Ended September 30, 1996   Ended June 30, 1996
     Millions of dollars        Domestic Foreign Total  Domestic Foreign Total
     Sales (includes intercompany sales)
       Crude oil and condensate $161    $142    $303    $154   $150    $304
       Natural gas               196     142     338     201    128     329
       Natural gas liquids        18       4      22      18      5      23
       Other                       1       0       1       1      0       1
         Total                   376     288     664     374    283     657
     Other revenue                 5       7      12       2      4       6
     Gain on asset sales           3      18      21     111      0     111
         Total revenues          384     313     697     487    287     774

     Production costs             65      51     116      72     49     121
     Exploration expenses          8      22      30       7     20      27
     Dry hole costs               38      12      50       1      3       4
     Depreciation, depletion &
       amortization              112      61     173     103     84     187
     Other operating expenses     38      13      51      34     13      47
         Results of operations
           before income tax    $123    $154    $277    $270   $118    $388

                                                     For the Three Months
                                                      Ended March 31, 1996
     Millions of dollars                       Domestic      Foreign     Total
     Sales (includes intercompany sales)
       Crude oil and condensate                 $181         $123      $304
       Natural gas                               226          127       353
       Natural gas liquids                        15            6        21
       Other                                       1            0         1
         Total                                   423          256       679
     Other revenue                                 3            6         9
     Gain on asset sales                           4            6        10
         Total revenues                          430          268       698

     Production costs                             93           51       144
     Exploration expenses                          4           17        21
     Dry hole costs                               10            3        13
     Depreciation, depletion &
       amortization                              127           62       189
     Other operating expenses                     41            8        49
         Results of operations before income tax$155         $127      $282


     UNOCAL CORPORATION
     OPERATING HIGHLIGHTS
     (UNAUDITED)
                                   For the Three Months  For the Twelve Months
                                         Ended December 31   Ended December 31
                                              1996      1995      1996    1995
     Net daily production
       Crude oil and condensate (thousand barrels daily):
         Domestic (a)                       86.7     121.0     95.8    125.1
         Foreign:
           Far East (b)                     87.6      86.4     83.7     85.1
           Other                            25.3      28.2     27.1     30.2
             Total Foreign                 112.9     114.6    110.8    115.3

         Worldwide                         199.6     235.6    206.6    240.4

     Natural gas (million cubic feet daily):
         Domestic (a)                      1,053     1,078    1,075    1,103
         Foreign:
           Far East (b)                      797       643      669      609
           Other                              59        67       68       53
             Total Foreign                   856       710      737      662

         Worldwide                         1,909     1,788    1,812    1,765

       Natural gas liquids (thousand
         barrels daily) (a)                 20.2      20.4     19.5     21.0

       Geothermal (million kilowatt-hours
         daily)                             19.9      16.7     18.0     16.1

     Average sales prices
         Crude oil and condensate (per barrel):
           Domestic                       $22.10    $14.59   $19.21   $15.03
           Foreign:
            Far East                      $21.62    $16.02   $19.17   $16.09
            Other                         $21.48    $15.23   $19.20   $15.69
             Total Foreign                $21.58    $15.75   $19.18   $15.95

         Worldwide                        $21.85    $15.07   $19.20   $15.40

     Natural gas (per mcf):
         Domestic                          $2.59     $1.75    $2.30    $1.56
         Foreign:
           Far East                        $2.39     $2.13    $2.28    $2.04
           Other                           $1.95     $1.82    $1.85    $1.39
             Total Foreign                 $2.36     $2.10    $2.23    $1.98

         Worldwide                         $2.49     $1.89    $2.27    $1.72

         (a) Includes production from California upstream properties of:
              Crude oil and condensate       0.9      28.1      7.4     27.9
              Natural gas                      0        54       13       61
              Natural gas liquids            0.0       0.6      0.1      0.7

         (b) Includes host country share in Indonesia of:
              Crude oil and condensate      29.9      25.8     27.6     30.3
              Natural gas                     28        20       27       22


     UNOCAL CORPORATION
     OPERATING HIGHLIGHTS  (continued)
     (UNAUDITED)
                                   For the Three Months  For the Twelve Months
                                        Ended December 31    Ended December 31
                                           1996        1995      1996     1995
     Agricultural products production volumes  (thousand tons)
       Ammonia                          379         319      1,468    1,307
       Urea                             286         276      1,131    1,082
       Other products                   164         292        658      775

     Agricultural products sales volumes  (thousand tons)
       Ammonia                          134         154        708      654
       Urea                             343         224      1,122      997
       Other products                   269         215      1,240    1,177


     UNOCAL CORPORATION
     EARNINGS BY BUSINESS SEGMENT
     (Unaudited)
                                   4th Quarter of 1996    4th Quarter of 1995
     Millions of dollars          Before-tax  After-tax  Before-tax  After-tax
     Petroleum
      Exploration and Production
       United States                  $121        $71        $153        $95
       Foreign                         147         71          29         18

     Geothermal and Power Operations (109)       (70)           8          5

     Diversified Businesses
       Agricultural Products            39         25          25         19
       Carbon and Minerals               7          7          17         12
       Pipelines                        22         18          19         16
       Other                             7          5           1         --

     New Ventures                     (16)       (10)          --         --

     Corporate and Unallocated
       Administrative and general expense(39)    (24)        (36)       (27)
       Net interest expense           (59)       (40)        (58)       (38)
       Environmental and litigation expense      (94)        (59)       (56)
                                      (35)
       Other                           (5)          9        (24)       (32)
     Earnings from continuing operations21          3          78         33

     Earnings (loss) from discontinued operations(805)      (500)         23
                                        16
         Total                      $(784)     $(497)        $101        $49

     Exploration and Production - this segment is engaged in the exploration
for, and the production and marketing of, crude oil, condensate, natural gas
and natural gas liquids.
     Geothermal and Power - this segment is involved in the exploration for,
and the production and sale of geothermal resources for the generation of
electricity.
     Diversified Businesses:
       Agricultural Products - manufactures and markets nitrogen-based
fertilizers for wholesale markets to the western United States and to the
Pacific Rim.
       Carbon and Minerals - produces and markets petroleum coke (other than
on the West Coast), graphites, solvents and specialty minerals.
       Pipelines - principally includes the company's equity interests in
affiliated pipeline companies.
       Other - principally includes the company's equity interest in The UNO-
VEN Company, a refining and marketing partnership in the midwestern United
States.
       New Ventures - this segment pursues foreign midstream business
development projects to sustain the long-term growth of the company.


     UNOCAL CORPORATION
     SPECIAL ADJUSTMENTS
     (Unaudited)

                                  4th Quarter of 1996    4th Quarter of 1995
     Dollars in millions except
       per share amounts         Before-tax  After-tax  Before-tax  After-tax

     Reported earnings (loss)    $(784)     $(497)      $101        $49
     Less: Special items
       Exploration & Production
         United States
          Asset Sales               (6)        (4)        44         27
          Sale of California oil and
            gas properties          (5)        (3)        --         --
          Settlement of Federal leases12         7        --         --
          FAS 121 Impairment       (52)       (32)      (44)       (27)
          Restructuring provision   (7)        (4)
          Columbia Gas Settlement    --         --        55         34
         Foreign
          FAS 121 Impairment         --         --      (43)       (26)
        Geothermal and Power Operations
         Asset Sales               (92)       (57)        --         --
         FAS 121 Impairment        (23)       (14)        --         --
         Other                        3          2        --         --
        Diversified Businesses
         Asset Sales
          Pipeline                    3          2        --         --
         Litigation provision - Carbon
           and Minerals             (2)        (1)        --         --
        Corporate & Unallocated
         Asset Sales                  3          2         9          5
         Environmental provision   (41)       (26)      (10)        (7)
         Litigation provision      (42)       (26)      (33)       (20)
         Asset write-downs           --         --       (3)        (2)
         Other                      (4)        (3)      (14)       (28)
        Discontinued Operations
         Asset Sales                 --         --         1          1
         Litigation provision         1          1        --         --
         Loss on disposal         (792)      (491)        --         --
       Total special items      (1,044)      (647)      (38)       (43)
     Adjusted earnings             $260       $150      $139        $92
     Less: Dividends on preferred stock          -                    9
     Adjusted net earnings applicable
       to common shares                        150                   83
     Adjusted net earnings per
       common share                          $0.60                $0.34

     UNOCAL CORPORATION
     EARNINGS BY BUSINESS SEGMENT
     EXCLUDING  SPECIAL ADJUSTMENTS
     (Unaudited)

                               4th Quarter of 1996     4th Quarter of 1995
     Millions of dollars     Before-tax   After-tax   Before-tax   After-tax

     Petroleum
      Exploration and Production
        United States         $179       $107         $98        $61
        Foreign                147         71          72         44

     Geothermal and Power
       Operations                3        (1)           8          5

     Diversified Businesses
        Agricultural Products   39         25          25         19
        Carbon and Minerals      9          8          17         12
        Pipelines               19         16          19         16
        Other                    7          5           1         --

     New Ventures             (16)       (10)          --         --

     Corporate and Unallocated
        Administrative and general
          expense             (39)       (24)        (36)       (27)
        Net interest expense  (59)       (40)        (58)       (38)
        Environmental and
          litigation expense  (11)        (7)        (13)        (8)
        Other                  (4)         10        (16)        (7)
     Earnings from continuing
       operations              274        160         117         77

     Earnings (loss) from
       discontinued operations(14)       (10)          22         15
         Total                $260       $150        $139        $92


     UNOCAL CORPORATION
     EARNINGS BY BUSINESS SEGMENT
     (Unaudited)

                             For Twelve Months         For Twelve Months
                           Ended December 31, 1996  Ended December 31, 1995
     Millions of dollars    Before-tax  After-tax    Before-tax   After-tax

     Petroleum
      Exploration and Production
        United States        $669        $412        $386       $240
        Foreign               546         316         330        181

     Geothermal and Power
       Operations            (76)        (55)          47         26

     Diversified Businesses
        Agricultural Products 152          98         113         74
        Carbon and Minerals    59          47          72         52
        Pipelines              86          69          82         66
        Other                  22          14          15          9

     New Ventures            (36)        (23)          --         --

     Corporate and Unallocated
        Administrative and general
          expense           (126)        (79)       (127)       (84)
        Net interest expense(256)       (175)       (257)      (178)
        Environmental and litigation
          expense           (230)       (143)       (148)       (92)
        Other                (52)        (25)        (38)       (45)
     Earnings from continuing
       operations             758         456         475        249

     Earnings (loss) from discontinued
       operations           (677)       (420)        (12)         11
         Total                $81         $36        $463       $260

     UNOCAL CORPORATION
     SPECIAL ADJUSTMENTS
     (Unaudited)

                                For the Twelve Months   For the Twelve Months
                               Ended December 31 1996  Ended December 31, 1995
     Dollars In millions
      except per share amounts
                                Before-tax  After-tax   Before-tax   After-tax

     Reported earnings          $811        $36         $463         $260
     Less: Special items
       Exploration & Production
         United States
         Asset Sales               2          1           52           32
         Sale of California oil and
           gas properties *      105         65           --           --
         Asset write-downs        --         --         (13)          (8)
         Settlement of Federal
           leases                 12          7           29           18
         FAS 121 impairment     (52)       (32)         (44)         (27)
         Restructuring provision (7)        (4)           --           --
         Columbia Gas Settlement  --         --           55           34
       Foreign
         Asset Sales              24         41            6            3
         FAS 121 impairment       --         --         (43)         (26)
       Geothermal and Power
         operations
         Asset Sales            (92)       (57)            9            7
         FAS 121 Impairment     (23)       (14)           --           --
         Other                     3          2           --           --
       Diversified Businesses
         Asset Sales
           Pipeline               15          9           --           --
           Agricultural Products  --         --            6            4
           Litigation provision - Carbon
             and Minerals        (2)        (1)           --           --
       Corporate & Unallocated
         Asset Sales              18         11           40           24
         Environmental provision(103)      (64)         (41)         (26)
         Litigation provision   (93)       (58)         (60)         (37)
         Asset write-downs        --         --          (6)          (4)
         Other                  (15)       (12)         (14)         (32)
       Discontinued operations
         Asset Sales               1          1            1            1
         Sale of California oil and
          gas properties           4          2           --           --
         Litigation              (2)        (1)           --           --
         Asset write-downs       (6)        (4)           --           --
         Other                    11          7           --           --
         Loss on disposal      (792)      (491)           --           --
       Total special items     (992)      (592)         (23)         (37)
     Adjusted earnings        $1,073       $628         $486         $297
     Less: Dividends on
       preferred stock            --         18           --           36
     Adjusted net earnings applicable
       to common shares           --        610           --          261
     Adjusted net earnings per
       common share               --      $2.45           --        $1.06

     * Net of provision for environmental remediation of $17 million before-
     tax and $10 million after-tax.

     UNOCAL CORPORATION
     EARNINGS BY BUSINESS SEGMENT
     EXCLUDING SPECIAL ADJUSTMENTS
     (Unaudited)

                                 For Twelve Months        For Twelve Months
                              Ended December 31, 1996  Ended December 31, 1995
     Millions of dollars         Before-tax   After-tax   Before-tax After-tax

     Petroleum
      Exploration and Production
        United States                $609       $375       $307        $191
        Foreign                       522        275        367         204

     Geothermal and Power Operations   36         14         38          19

     Diversified Businesses
        Agricultural Products         152         98        107          70
        Carbon and Minerals            61         48         72          52
        Pipelines                      71         60         82          66
        Other                          22         14         15           9

     New Ventures                    (36)       (23)         --          --

     Corporate and Unallocated
        Administrative and general
          expense                   (126)       (79)      (127)        (84)
        Net interest expense        (256)      (175)      (257)       (178)
        Environmental and litigation
          expense                    (34)       (21)       (47)        (29)
        Other                        (55)       (24)       (58)        (33)
        Earnings from continuing
          operations                  966        562        499         287

        Earnings (loss) from
          discontinued operations     107         66       (13)          10
           Total                   $1,073       $628       $486        $29

     UNOCAL CORPORATION
     RESTATED EARNINGS BY BUSINESS SEGMENT
     (Unaudited)

                                                        1st Quarter of 1996
                                  1st Quarter of 1996  Excluding Special Items
     Millions of dollars          Before-tax  After-tax  Before-tax  After-tax

     Petroleum
      Exploration and Production
       United States                $155          $96       $151        $94
       Foreign                       127           70        121         66

     Geothermal and Power Operations   9            5          9          5

     Diversified Businesses
       Agricultural Products          25           16         25         16
       Carbon and Minerals            26           18         26         18
       Pipelines                      30           23         18         16
       Other                           1            1          1          1

     New Ventures                    (4)          (2)        (4)        (2)

     Corporate and Unallocated
       Administrative and general
         expense                    (29)         (18)       (29)       (18)
       Net interest expense         (72)         (50)       (72)       (50)
       Environmental and litigation
         expense                    (23)         (14)        (7)        (4)
       Other                        (20)         (14)       (21)       (15)
       Earnings from continuing
         operations                  225          131        218        127
       Earnings (loss) from
         discontinued operations    (11)          (7)       (11)        (7)
           Total                    $214         $124       $207       $120


     UNOCAL CORPORATION
     RESTATED EARNINGS BY BUSINESS SEGMENT
     (Unaudited)

                                                         2nd Quarter of 1996
                                 2nd Quarter of 1996   Excluding Special Items
     Millions of dollars         Before-tax   After-tax  Before-tax  After-tax

     Petroleum
      Exploration and Production
       United States                $270        $168        160        $100
       Foreign                       118          68        118          68

     Geothermal and Power Operations   9           4          9           4

     Diversified Businesses
       Agricultural Products          57          37         57          37
       Carbon and Minerals            11           9         11           9
       Pipelines                      17          14         17          14
       Other                           9           5          9           5

     New Ventures                    (6)         (4)        (6)         (4)

     Corporate and Unallocated
       Administrative and general
         expense                    (25)        (16)       (25)        (16)
       Net interest expense         (63)        (48)       (63)        (48)
       Environmental and litigation
         expense                    (53)        (33)        (7)         (5)
       Other                        (24)        (16)       (13)         (7)
     Earnings from continuing
       operations                    320         188        267         157

     Earnings from discontinued
       operations                     80          50         76          48
     Total                          $400        $238       $343        $205


     UNOCAL CORPORATION
     RESTATED EARNINGS BY BUSINESS SEGMENT
     (Unaudited)

                                                        3rd Quarter of 1996
                                  3rd Quarter of 1996  Excluding Special Items
     Millions of dollars          Before-tax  After-tax  Before-tax  After-tax

     Petroleum
      Exploration and Production
       United States                 $123        $77      $119          $74
       Foreign                        154        107       136           70

     Geothermal and Power Operations   15          6        15            6

     Diversified Businesses
       Agricultural Products           31         20        31           20
       Carbon and Minerals             15         13        15           13
       Pipelines                       17         14        17           14
       Other                            5          3         5            3

     New Ventures                    (10)        (7)      (10)          (7)

     Corporate and Unallocated
       Administrative and general
         expense                     (33)       (21)      (33)         (21)
       Net Interest expense          (62)       (37)      (62)         (37)
       Environmental and litigation
         expense                     (60)       (37)       (9)          (5)
       Other                          (3)        (4)      (17)         (12)
     Earnings from continuing
       operations                     192        134       207          118

     Earnings from discontinued
       operations                      59         37        56           35
         Total                       $251       $171      $263         $153

Updated: January 1997