press release

Unocal demonstrates commitment to Thailand; acquires interest in planned Thai power plant

Bangkok, Thailand, Feb. 28, 2000 -- Unocal Thailand, Ltd., today announced the signing of an agreement to acquire 30 percent of the shares of Amata Power (Bangpakong) Limited, a power plant project in eastern Thailand under the Small Power Producers (SPP) program.

Amata Power (Bangpakong) is a 112-megawatt (MW), gas-fired cogeneration plant project to be located in Amata Nakorn Industrial Estate, 57 kilometers east of Bangkok. It is being developed under the Electricity Generating Authority of Thailand (EGAT)'s small power producers (SPP) program. A power purchase agreement to sell 90 MW has been signed with EGAT; the remaining power will be sold to industrial users. The commercial operation date is targeted for third-quarter 2001. Unocal Bang Pakong, Ltd., a subsidiary of Unocal International Corp., is participating in this venture.

Natural gas supply to the plant will be provided by the Petroleum Authority of Thailand (PTT).

This project is Unocal's second power plant initiative in Thailand. Unocal Asia-Pacific Ventures Ltd. has a 24-percent interest in a 700-MW gas-turbine power plant owned by Independent Power (Thailand), Ltd., an independent power producer (IPP) in partnership with Thai Oil Power Co., Ltd., and Westinghouse Electric S.A. The unit, located in Si Racha, Chon Buri, is scheduled to come on stream within the first quarter of this year.

With the completion of the transaction, the remaining 70 percent of the shares in the Amata venture will be owned by Amata Power Limited, which is owned by Energie Baden-Wuerttemburg (30%), B. Grimm Bayernwerk Electrowatt Ltd. (51.2%), Bang Pakong Industrial Park 2 Public Co., Ltd. (13.77%), and B. Grimm Joint Venture Holding Limited (5.03%).

Randy Howard, Unocal's vice president of International Energy Operations (North ASEAN), Henry Aldorf, Unocal vice president of Commercial Affairs and Industrialization, and Harald Link, executive chairman of Amata Power and chairman of the B. Grimm Group of Companies, signed the agreement on behalf of the parties involved.

"We are excited to be investing with Amata Power, which shares our vision for growth for the Kingdom of Thailand," said Howard, who is also the president and chairman of Unocal Bang Pakong. "This synergistic partnership further underscores Unocal's strong commitment to the improvement of the Thai economy."

"Gas-fired power plants fit in well with our development strategy," said Link. "Thanks to its clean quality, combustion efficiency, and reasonable costs, natural gas is a desirable fuel for the industrial estates and for Thailand. In addition, partnership with a reputable gas producer like Unocal -- with its four decades of service to Thailand -- ensures us that we both are contributing our best to the growth of the Kingdom in the best way we could." B. Grimm & Co. is among the first companies to do business in Thailand, having been in the Kingdom for over 120 years.

Unocal Corporation is also the parent company of Unocal Thailand, Ltd., the leading supplier of natural gas and condensate to the Kingdom, with about 1 billion cubic feet a day of gas supply and close to 40,000 barrels per day of condensate, from 13 fields in the Gulf of Thailand (Unocal, approximately 60% net interest). Natural gas is purchased by PTT under four sales contracts. Unocal operates the fields on behalf of its co-concessionaires -- Mitsui Oil Exploration Co., Ltd., PTT Exploration & Production Public Company Limited, Amerada Hess (Thailand) Ltd., and Moeco Thai Oil Development Co., Ltd.

Updated: February 1999