press release

Unocal recipient of top Indonesian government environmental award for greenbelt project

Jakarta, Indonesia, June 22, 2000 -- Unocal Corporation (NYSE: UCL) today announced that its Unocal Indonesia subsidiary has received the Indonesian government's highest environmental improvement award for a reforestation and rehabilitation project in Balikpapan, East Kalimantan.

The KALPATARU Award was awarded to Unocal, state oil company Pertamina and the city of Balikpapan for the Green Belt Rehabilitation Project, a cooperative effort started 12 years ago to prevent hillside erosion, improve drainage and beautify several areas in and around Balikpapan. The project employs local labor under the leadership of the Environmental Department of the Balikpapan city government, with planning, engineering, and funding from Unocal and Pertamina.

The award was presented June 5 by Indonesian President Abdurrahman Wahid and Vice President Megawati Sukarnoputri. Receiving the award on behalf of Unocal were Hardjono Dhanutirto, vice president of Governmental Relations; Roostini Chaniago, environmental specialist, and Samsulistyo, supervisor of External Affairs.

Robert Hinkel, Unocal's Sr. Vice President and General Manager in Balikpapan, said, "Unocal is committed to improving the lives of people wherever we work. We are very honored to receive this award as a recognition of that commitment. In addition to providing local employment and environmental improvement, this project has also stabilized areas prone to erosion, improved drainage and sewage, and highlighted techniques for improved planning in residential development."

Through the Green Belt Rehabilitation Project and other environmental efforts, Unocal has contributed to the improvement of more than 100,000 square meters of land in areas near the company's facilities in Balikpapan. Some of these areas were reforested, while other, more hilly areas were protected from erosion with sandbags, land leveling and the planting of grass and bamboo. Fruit trees were also planted to supplement local community income.

More than 600 residents have received temporary employment throughout the 12 years of Unocal's joint environmental efforts with Pertamina and the City of Balikpapan. Over the company's 31 years in East Kalimantan, Unocal has invested more than $5 billion in the national and local economy through its oil and gas developments.

Other community development projects undertaken by Unocal and Pertamina include job training and human resource development, infrastructure construction (including roads, water supply improvements, and medical facilities), and direct funding in the form of revolving loans and drought relief assistance.

Updated: June 2000