press release

Unocal increases interest in Caspian project

Sugar Land, Texas, July 30, 1996 -- Unocal Corporation said today that its subsidiary, Unocal Khazar, Ltd, has acquired from Pennzoil Caspian Corporation an additional one-half percent interest in the joint development and production sharing agreement to develop three oil fields offshore Azerbaijan in the Caspian Sea.

This brings Unocal's total interest in the estimated four-billion-barrel project to 10.04 percent, the third largest interest in the project consortium.

"We are pleased to have the opportunity to increase our share in this very important project," said Marty Miller, vice president for new ventures in Central Asia and Middle East. "Our participation in the Azerbaijan project is a key element in our growth strategy."

The consortium developing the fields offshore Azerbaijan expects first production from the project in late 1997. The consortium is made up of 11 companies, and operates through the Azerbaijan International Oil Company (AIOC).

The development of the Azeri and Chirag fields, and the deep water portion of the Guneshli field, through the AIOC, is part of Unocal's growing interest in the Central Asian region. Unocal is also proposing the development of a natural gas pipeline to transport gas from the previously developed, state-owned Dauletabad field in Turkmenistan to markets in Pakistan and a crude oil pipeline from the Turkmenistan/Uzbekistan border to the Pakistan coast on the Arabian Sea, providing world market access for Central Asian oil production.

Updated: July 1996