press release

Unocal completes restructuring of UNO-VEN, sale of petrochemical business to PDVSA

EL SEGUNDO, Calif., May 1, 1997 -- Unocal Corporation and PDV America, Inc., a unit of Petroleos de Venezuela, S.A. (PDVSA), announced today they have completed the restructuring of The UNO-VEN Company, a Midwest refining and marketing partnership.

In a separate transaction, Unocal sold to PDV Midwest Refining, L.L.C., an affiliate of PDV America, the petrochemical business previously conducted by Unocal Hydrocarbon Sales, an Illinois-based bulk distributor of solvents. Terms of the sale were not disclosed.

In restructuring UNO-VEN, a 50-50 partnership, PDV Midwest Refining, L.L.C., received substantially all of the refining and marketing assets of UNO-VEN and assumed certain liabilities associated with those assets. The transaction also included the transfer of a 25-percent interest in The Needle Coker Company from the partnership to PDV Midwest Refining.

Unocal affiliates now own 100 percent of the partnership, which will be renamed Midwest Carbon Company and which retains $250 million for reinvestment in new projects. Midwest Carbon Company continues to hold and operate other petroleum coke business activities that were not part of the restructuring.

"This transaction completes Unocal's transition from a vertically integrated oil company into the world's leading independent exploration and production company -- first in reserves and production," said Roger C. Beach, Unocal's chairman and chief executive officer. "Our strategy is now fully focused on potentially high-return energy project development opportunities in the fast-growing economies of Asia, and on strengthening our resource base in the Louisiana/Gulf of Mexico region."

At the end of the first quarter, Unocal completed the sale of its West Coast refining, marketing and transportation assets to Tosco Corporation. The sale was valued at approximately $2 billion. In March, Spirit Energy 76, Unocal's domestic exploration and production unit, was awarded interests in 55 deep-water and 18 continental-shelf blocks in the Central Gulf of Mexico.

Unocal Corporation is the world's largest, publicly traded independent exploration and production company with petroleum reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico.

Updated: May 1997