press release

Unocal scores with natural gas, oil discovery on deepwater Ranggas prospect offshore East Kalimantan, Indonesia

El Segundo, Calif., Jan. 9, 2001 -- Unocal Corporation (NYSE: UCL) today said that its Unocal Rapak, Ltd., subsidiary drilled a natural gas and crude oil discovery on the Ranggas prospect in the southern portion of the Rapak Production-Sharing Contact (PSC) area, offshore East Kalimantan, Indonesia.

The Ranggas-1 well was drilled to a total depth of 11,845 feet (3,600 meters) in 5,303 feet (1,600 meters) of water. The well encountered 250 feet (76 meters) of gas pay and 40 feet (12 meters) of oil pay.

The discovery well is located on a new geologic structure approximately 28 miles (45 kilometers) southeast of Indonesia's first deepwater field, West Seno. West Seno is currently being developed by Unocal.

Unocal expects to conduct delineation drilling on the structure, with additional results expected in March.

Unocal Rapak is operator of the Rapak PSC. Pending Pertamina approval, Unocal holds an 80-percent working interest, while Lasmo PLC holds the remaining 20-percent working interest.

This news release contains certain forward-looking statements about Unocal's future drilling plans. 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 1999 Form 10-K and subsequent reports filed with the Securities and Exchange Commission. Copies of the company's SEC filings are available from the company by calling 800-252-2233. The reports are also available on the Unocal web site.

Under the terms of the PSCs, Unocal Indonesia and its affiliates, as contractors to Pertamina, the Indonesia national oil company, are entitled to varying shares of the oil and gas produced from commercial discoveries.

Updated: January 2001