press release

Unocal joins Occidental natural gas development project in Bangladesh

El Segundo, Calif., Jan. 16, 1997 -- Occidental Petroleum Corporation and Unocal Corporation today announced the signing of a farm-in agreement between their subsidiaries which provides for the transfer to Unocal of a 50 percent interest in Occidental's production-sharing contracts covering 3 million acres in northeast Bangladesh.

Occidental is the operator for Blocks 13 and 14, where the Jalalabad field has been partially delineated, and Block 12, which is adjacent to several gas fields operated by Petrobangla, the Bangladesh national petroleum company. Occidental holds the remaining 50 percent interest in the production sharing contracts.

A sales contract with Petrobangla for the initial delivery of 100 million feet per day of natural gas from the Jalalabad field was signed in November 1996.

Under the terms of the production sharing contracts, the joint venture plans to drill delineation/development wells and construct production facilities in the Jalalabad field over the next two years. Production is targeted to begin in mid-1998. In addition, the joint venture will drill four exploration wells in the area covered by Blocks 12, 13 and 14 over the next three years.

The co-venturers believe this is a very promising natural gas area with a significant known resource that is linked to a ready market. Natural gas demand in Bangladesh is expected to more than double from its current level over the next 10 to 15 years.

Updated: January 1997