Unocal, Koc Holdings to form natural gas marketing services venture in Turkey
Sugar Land, Texas, Nov. 10, 1997 Unocal Corporation said today that its Unocal International Energy Ventures, Ltd., subsidiary and Koc Holdings, A.S., have signed a letter of intent to create Turkey's first private energy distribution and marketing company.
Under the agreement, Unocal and Koc will be working to create a new natural gas marketing services venture to purchase, market and transport natural gas supplies to end-users in Turkey. In addition, the proposed joint venture would evaluate opportunities for creating a pipeline system within Turkey that could accommodate the privatization of the country's energy industry.
"Our association with Koc Holdings in this new venture promises to help move Turkey's energy market into a new and exciting arena," said John F. Imle, Jr., president of Unocal Corporation. "Koc is the premier conglomerate group in Turkey and is highly respected in the manufacturing, international finance and energy communities. We look forward to working together to provide Turkey with regional energy solutions."
One of the alliance's key objectives is to provide energy independence for end-users in Turkey and to help relieve some of the region's current and future power shortages. To this end, Unocal and Koc have been working closely on possible development of power projects under Turkey's ongoing power-sector privatization program.
"Our main goal is to secure reliable, long-term and cost-effective natural gas supply, enabling our country's businesses to compete with other European Union businesses, which currently have access to competitive sources of natural gas," said Rahmi Koc, chairman of Koc Holdings, A.S. "We teamed up with Unocal because of its regional resources activities, and its expertise in pipeline construction, energy marketing and resource development. We believe this will be a very successful alliance."
Unocal and Koc will seek economically competitive gas supplies for delivery through pipelines and to power plant joint ventures in Turkey that are contemplated by the two companies.
Turkey-based Koc Holdings is a Fortune Global 500 conglomerate, operating in Turkey for more than 72 years. A diversified corporation, Koc is involved in automobile and white goods manufacturing, banking and finance with Koc Bank and KOC Finance, food and white-goods distribution and is the largest liquefied petroleum gas distributor in Turkey. Headquartered in Istanbul, Koc has 26 offices around the world and is increasing its exposure in the former Commonwealth of Independent States (CIS) area.
Unocal Corporation is one of the world's leading energy resource and project development companies, 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. The company is also active in energy resource development activities in Azerbaijan and Bangladesh and is developing gas-marketing solutions for Turkmenistan. The company maintains twin headquarters in California and Malaysia, with major offices in Singapore, Jakarta, Bangkok and Sugar Land, Texas.
Forward-looking statements and estimates of future financial and operating results in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.
Updated: November 1997