press release

Unocal joins offshore petroleum exploration project in Brunei

El Segundo, Calif., June 2, 1997 -- Unocal Corporation said today that its Unocal Borneo Utara, Ltd. subsidiary has signed a farm-in agreement with Fletcher Challenge Energy Borneo, Ltd. providing Unocal with one-half of Fletcher's 53.9% interest in a petroleum exploration project on Blocks A and C/D offshore Brunei. The agreement is awaiting final approval by the government of Brunei.

The blocks, which encompass about 931 square miles (2410 sq. km.), are located between 4 and 58 miles (6-94 km) offshore Brunei in the South China Sea.

Under the terms of the agreement, Unocal will participate in the design, drilling, evaluation and testing of any future wells on the farm-in blocks.

"We are very excited about this resource opportunity in a world-class prospective area," said John G. Vandermeer, president of Unocal Asia-Pacific Ventures, Ltd., Unocal's Singapore-based new business development unit in Asia.

The company will open a new office in Brunei to coordinate the farm-in agreement and to pursue other exploration or project development opportunities.

Unocal Corporation is the world's largest publicly traded independent exploration and production company with 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: June 1997