press release

Unocal, PDVSA announce definitive agreements for UNO-VEN restructuring, sale of Unocal petrochemical business

EL SEGUNDO, Calif., April 11, 1997 -- Unocal Corporation and PDV America, Inc., a unit of Petroleos de Venezuela, S.A. (PDVSA), announced today the signing of a definitive agreement for the restructuring of The UNO-VEN Company, a Midwest refining and marketing partnership held 50-50 by affiliates of Unocal and PDV America.

The agreement provides that an affiliate of PDV America will receive substantially all of the refining and marketing assets of UNO-VEN and will assume certain liabilities associated with those assets. Unocal affiliates will own 100 percent of the partnership, which will continue to hold and operate petroleum coke businesses that are not part of the transaction. The partnership will retain $250 million.

In a separate transaction, the affiliate of PDV America will also acquire the petrochemical business that is currently conducted by Unocal Hydrocarbon Sales. Terms of the sale of Unocal's petrochemical unit were not disclosed.

Unocal and PDV America expect to close both transactions by May 1, 1997, subject to clearance by regulatory agencies and the satisfaction of certain other conditions.

Updated: April 1997