press release

Unocal, Occidental agree to swap interests in Bangladesh and Yemen E&P assets

El Segundo, Calif., May 27, 1999 - Unocal Corporation and Occidental Petroleum Corporation announced today that the companies have agreed to an exchange of assets in Yemen and Bangladesh. Unocal will trade its 28.57 percent stake in three producing fields in Yemen and other consideration for Occidental's 50 percent working interest in three blocks in northeast Bangladesh.

The Bangladesh assets involved in the transaction include two production-sharing contracts covering Blocks 12, 13 and 14 (3.4 million acres) in northeast Bangladesh in which Unocal already holds the other 50 percent working interest.

The Jalalabad gas field, located on Block 13, currently produces approximately 60 to 100 million cubic feet of gas and 1,000 to 1,600 barrels of condensate per day through four wells and a state-of-the-art gas plant. Initial gas deliveries to Bangladesh's national energy company, Petrobangla, for domestic use began February 8, 1999.

Additional Bangladesh assets include the world-class Bibiyana gas field discovery on the 2.2 million-acre Block 12.

"This acquisition further demonstrates Unocal's long-term commitment to Bangladesh and to helping develop the country's vast natural resources in a cost-effective manner," said Roger C. Beach, Unocal chairman and chief executive officer.

According to Unocal Bangladesh Ltd. President Terry Budden, "Our intention is to have a very smooth transition that will have no adverse impact on operations. We look forward to a continuing long-term partnership with Petrobangla, the Government of Bangladesh and its people."

The assets acquired by Occidental Petroleum Corporation include a 28.57 percent working interest in the production-sharing contract of the East Shabwa contract area in the Republic of Yemen. The three producing fields in the contract area are Kharir, Atuf Northwest and Wadi Taribah. Current gross production from the fields is approximately 15,000 barrels of oil per day.

With respect to Yemen, Beach added, "It is important to note that Unocal has had an excellent relationship since 1987 with our joint venture partners and the Ministry of Oil and Mineral Resources in Yemen, which resulted in the successful initial development of three fields in the East Shabwa concession and ongoing expansion programs. We have been pleased with the progress made in developing the Yemen fields."

Unocal is one of the world's largest independent oil and gas exploration and production companies, with resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.

Forward-looking statements regarding production levels, exploration programs, and resource potential in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1998 Form 10-K report filed with the Securities and Exchange Commission.

Updated: May 1999