Unocal proposes development of Moulavi Bazar gas field in Bangladesh
Dhaka, Bangladesh, March 10, 2003 - Unocal Corporation (NYSE: UCL) today said that two of its subsidiaries propose to develop the Moulavi Bazar natural gas field that could provide up to 100 million cubic feet (mmcf) of gas per day to meet the needs of the domestic Bangladesh market.
"We could begin commercial production of natural gas from the field within a year after we sign a gas purchase and sales agreement with Petrobangla, the Bangladesh Oil & Gas Corporation," said Andrew L Fawthrop, president and managing director of Unocal Bangladesh, Ltd.
Natural gas production from the Moulavi Bazar field would be delivered into the existing Bangladesh national gas network. Total development cost of the project, including two development wells, has been estimated at US$42 million. Unocal Bangladesh Blocks 13 and 14, Ltd., is operator and, together with Unocal Bangladesh, Ltd., has a 100-percent working interest in the production sharing contract (PSC) covering the field.
This announcement follows the recent completion of appraisal studies of the field. The Moulavi Bazar field is located in Block 14 in the northeast district of Sylhet. The company estimates the field has a gross resource potential of greater than 440 billion cubic feet of gas.
"This announcement reinforces our commitment to meet the nation's energy needs and our partnership with the government and the people of Bangladesh," Fawthrop said. "We highly value this relationship, and we look forward to continuing to work together with Petrobangla to deliver the maximum benefit from Bangladesh's resources."
In 1999, the MB #3 well was directionally drilled to a total depth of 7,872 feet in a record time of eight days, the shortest time of any well drilled in Bangladesh. The MB #2 well, drilled in the same year, tested at a record rate of 72 mmcfd from a single production zone, which is the highest test rate in Bangladesh.
The Moulavi Bazar development would supplement Unocal Bangladesh's current production from the Jalalabad field, which supplies gas to the Bangladesh domestic market. Unocal has been producing increasing amounts of gas and condensate from Jalalabad since March 1999.
Unocal subsidiaries also operate and hold a 100-percent working interest in the Bibiyana gas field in Bangladesh under a separate PSC. The company has proposed to export natural gas by pipeline from the Bibiyana field to markets in India. That proposal is currently under review by the Government of Bangladesh.
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 development plans, expected production rates, capital expenditures and resource potential. Resource potential is a speculative estimate (including non-proved resource) based on engineering, geophysical, and geological studies and may include market risk. 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 amended 2001 Form 10-K/A and other reports filed with the U.S. Securities and Exchange Commission. Unocal undertakes no obligation to update the information in this news release.
Cautionary Note To U.S. Investors: The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Unocal uses certain terms in this news release, such as "resource potential," that the SEC's guidelines strictly prohibit Unocal from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Unocal's amended 2001 Form 10-K/A (SEC File No. 1-8483).
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. You can also obtain this form from the SEC by calling 800-SEC-0330.
Under the terms of the production-sharing contracts, Unocal Bangladesh, Ltd., and its affiliates, including Unocal Bangladesh Blocks 13 and 14, Ltd., as contractors to Petrobangla, the Bangladesh national oil company, are entitled to varying shares of the oil and gas produced from commercial discoveries.
Updated: March 2003