Unocal reports $3.4 million shortfall for Indonesian March steam deliveries
El Segundo, Calif., June 17, 1998 - Unocal Corporation said today that its wholly owned subsidiary, Unocal Geothermal of Indonesia, Ltd. (UGI), received a $0.9 million payment for $4.3 million in March steam deliveries to Gunung Salak electric generating Units 1, 2 and 3, creating a shortfall of $3.4 million. UGI operates the Gunung Salak field and supplies steam to Units 1, 2 and 3.
In addition to the March shortfall, the company currently has a receivable balance of $44 million, most of which is for steam sales from the Salak field. Of this total, $12 million is due by the end of August 1998, and the balance is payable over the next several years.
Unocal said that it is engaged in discussions with Indonesian government entities to explore potential opportunities to resolve the shortfall issue to the satisfaction of all parties.
Steam production and electricity generation at the Salak field, located on the island of Java, have not been affected.
The company's net aggregate property investment in its Indonesian geothermal operations is approximately $290 million, including both the Salak and Sarulla contract areas. Sarulla is located in Northern Sumatra.
Unocal's Indonesian crude oil and natural gas production continues to operate normally, with most of its production sold in export markets. Unocal operates nine producing fields offshore East Kalimantan.
Updated: June 1998