press release

Unocal says Bangladesh Ministry of Energy approval pending for Shahbazpur contract

El Segundo, Calif., Sept. 15, 1997 -- Unocal Corporation today said that the initialing last week of a production sharing contract (PSC) for the Shahbazpur gas field in Bangladesh was an important step in advancing the company's proposed integrated natural gas resource, pipeline and electric power plant project.

However, the company noted that the PSC still needs to be signed by the Bangladesh Ministry of Energy. In addition, the company continues to negotiate agreements for participation in the associated pipeline and power generation projects.

The initialing of the PSC by Unocal Bangladesh, Ltd., and Petrobangla, the national oil company, finalizes various terms and conditions for development of the natural gas resource in the Shahbazpur field. The gas would be used for electrical power generation.

Unocal Bangladesh's Western Region Integrated Project includes the development of the Shahbazpur gas resource, and construction of a pipeline system to serve the western region of Bangladesh and multiple power plants with an aggregate capacity of approximately 400 megawatts (MW).

The company expects to finalize all of the agreements to enable its Bangladesh subsidiary to begin field development at Shahbazpur and construction of a pipeline and power plants by early 1998. The gross investment anticipated for this group of projects is expected to total about $700 million, of which 40-70 percent will be project financed.

Updated: September 1997