press release

Unocal, Paharpur sign MOU to develop project for gas, power and fertilizers in West Bengal

Calcutta, India, Dec. 12, 1997 - Unocal Bharat Limited today said it has signed a Memorandum of Understanding (MOU) with Paharpur Cooling Towers Limited of Calcutta to develop several projects within India as part of their proposed integrated Project Energy Renaissance.

The Project Energy Renaissance proposal, announced on Tuesday, calls for an 800,000-tonne-per-annum fertilizer plant at Haldia, combined-cycle power plants with a total capacity of up to 1,500 megawatts; and pipelines transporting up to 1 billion cubic feet of competitively priced, clean-burning natural gas per day to industrial centers in West Bengal and beyond. The total investment required for these projects could exceed US$2 billion.

"We are pleased to be able to take this important step in the development of Project Energy Renaissance, which promises to bring much-needed natural gas to West Bengal," said Arun Metre, president and managing director of Unocal Bharat Limited.

Under the terms of the MOU, Unocal is to be the lead developer of the project. Both Paharpur and Unocal will work toward the establishment of a joint venture by mid-1998. Guarav Swarup, director, Paharpur Cooling Towers, said, "We believe that this project has the potential of becoming the turning point for the economic development of the entire eastern region. Furthermore, it reinforces our commitment to West Bengal."

Unocal Bharat Limited is a wholly owned subsidiary of Unocal Corporation, a leading global energy resource and project development company. Unocal had year-end 1996 petroleum 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 the development of energy resources, pipelines and power projects in Asia and Latin America. Unocal maintains twin headquarters in California and Malaysia, with major offices in Singapore, Jakarta, Bangkok and Sugar Land, Texas.

The company has made a significant commitment to Asia, investing some US$5 billion to date in the exploration and development of oil and gas resources, pipelines and related infrastructure to help meet the region's rapidly expanding demand for energy.

Updated: December 1997