Unocal and BAPEX sign PSC with Bangladesh for block 7
Dhaka, Bangladesh, April 3, 2000 - The Government of Bangladesh formally awarded block 7 to Unocal Bangladesh, Ltd., and Bangladesh Petroleum Exploration Co. Ltd. (BAPEX), the national exploration company, with the signing of a production-sharing contract (PSC). Unocal Bangladesh is a wholly owned subsidiary of U.S.-based Unocal Corporation (NYSE: UCL).
Western Region Integrated Project
Unocal has proposed development of the Western Region Integrated Project (WRIP) that would include production from the Shahbazpur field. The Government of Bangladesh recently renewed the letter of intent with Unocal for the WRIP development, with BAPEX as Unocal's proposed co-venturer in the Shahbazpur field.
Unocal expects to supply Bangladesh's domestic market with natural gas from the Shahbazpur field, which may contain more than 400 billion cubic feet of recoverable natural gas. The WRIP would include a gas pipeline from Bhola to Khulna and development of approximately 350 megawatts of power from three generating plants in two phases. Unocal and BAPEX would utilize project financing to fund development of the project.
Extensive natural gas resources
As the gas markets and national demand expand beyond the capacity of the Shahbazpur field, Unocal expects to explore for natural gas resources on Block 7. Additional exploration investment in the country will be commensurate with market development.
Unocal and its wholly owned subsidiaries have already identified potential gas resources of 5 to 7 trillion cubic feet in the northern part of the country. This includes the development of the Jalalabad gas field, located in block 13, the world-class Bibiyana gas field in block 12, and the Moulavi Bazar gas field in block 14.
Unocal is one of the world's largest independent oil and gas exploration and production companies, with resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region, Latin America and West Africa. Unocal Bangladesh recently received the Outstanding Company of the Year Award by the American Chamber of Commerce in Bangladesh and is now the largest foreign investor in Bangladesh.
Forward-looking statements regarding exploration activities and lease acquisitions in this news release are based on assumptions concerning market, operational, competitive, regulatory, environmental, and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1999 Form 10-K report filed with the Securities and Exchange Commission.
Updated: April 2000