press release

Unocal Midstream & Trade announces open season for proposed Gulf of Mexico deepwater port and crude oil terminal system

Unocal Midstream & Trade announces open season for proposed Gulf of Mexico deepwater port and crude oil terminal system

Sugar Land, Texas, June 11, 2003 - Unocal Midstream & Trade (UMT), a division of Unocal Corporation (NYSE: UCL), today announced the initiation of an open season offering crude oil port and pipeline transportation services from its proposed Bulk Oil Offshore Transfer System (BOOTS) facility in the Gulf of Mexico.

BOOTS would be a state of the art Gulf of Mexico deepwater port located 100 miles south of Beaumont, Texas capable of offloading tankers with capacity of up to 2 million barrels at rates up to 1.2 million barrels per day. BOOTS would also be capable of receiving vessels transporting crude oil from domestic Gulf of Mexico deepwater production fields. BOOTS will deliver crude oil via new pipelines to existing refineries on the Texas Gulf Coast and will have access to other inland refineries via existing pipeline and terminal facilities.

UMT is conducting an open season for the next 24 days to offer the remaining 700,000 barrels per day of firm BOOTS pipeline capacity to interested parties. The open season process allows interested parties to review the rates, terms and conditions for port and transportation services offered by the BOOTS facility and provides a means to make a commitment of crude volume for these services.

"This open season will help us supplement existing commitments from refiners in support of this efficient, reliable and safe system of crude delivery," said Joseph Blount, president of Unocal Midstream & Trade. "When we have the additional commitments, we can proceed with the deepwater port permit application process." UMT markets, processes, stores and transports oil and natural gas produced by Unocal and other producers.

"A new deepwater port and related pipelines will provide a more efficient crude oil offloading facility that would result in reduced handling requirements, port calls and transit times, thus reducing costs and risks associated with the movement of crude to Gulf Coast refineries," added Blount.

The BOOTS facility, as proposed, will consist of a pumping platform; two single-point moorings (SPMs); a 100-mile-long, 48/42-inch-diameter pipeline to Unocal's Beaumont Terminal, which has 7.5 million barrels of crude oil and product storage capacity and existing connections to major existing pipeline systems into and out of the Texas Gulf Coast area; and a 50-mile-long, 42-inch-diameter pipeline to a proximate location in Texas City, Texas.

The system could be in operation by the beginning of 2007 assuming sufficient commitments are obtained and the necessary permits are granted. BOOTS, LLC intends to seek project financing opportunities to offset most of the proposed project capital costs, which total approximately $500 million.

Companies wanting to learn more about the BOOTS project or obtain an open season information package can contact Michael Wilems at 281-287-7491 or michael.wilems@unocal.com.

About Unocal Midstream & Trade

Unocal Midstream & Trade manages Unocal's pipeline, terminal, and storage assets; including interests in more than 8,000 miles of crude oil, natural gas and product pipelines, 12 million barrels of crude oil and products storage, and 91 billion cubic feet of natural gas storage.

About Unocal Corporation

Unocal is one of the world's leading independent natural gas and crude oil exploration and production companies. The company's principal oil and gas activities are in North America and Asia.

This news release contains certain forward-looking statements about business operations and government permitting. These statements are not guarantees of future performance. The statements are based upon Unocal's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Actual results could differ materially as a result of factors discussed in Unocal's 2002 Form 10-K (SEC File No. 1-8483) and other reports filed with the U.S. Securities and Exchange Commission. Unocal undertakes no obligation to update the information in this news release.

Copies of the Unocal's SEC filings are available from the company by calling 800-252-2233. The reports are also available on the Unocal web site, www.unocal.com. You can also obtain this form from the SEC by calling 800-SEC-0330.

Updated: June 2003