press release

Unocal sets gas delivery record in Thailand

Bangkok, April 29, 1998 -- Unocal Thailand, Ltd., today announced a record delivery of 1,118 million cubic feet a day (mmcfd) of natural gas from fields in the Gulf of Thailand on April 26, surpassing its own previous record of 1,070 mmcfd, set on December 28, 1996, and exceeding the company's high production goals. Unocal Thailand is a wholly owned subsidiary of Unocal Corporation and has a 64 percent average working interest in the 10 offshore gas fields.

The gas supplied by Unocal Thailand currently accounts for two-thirds of the domestic gas supply and three-fourths of offshore gas production. Unocal-produced gas satisfies more than a quarter of the electricity demand in Thailand, where gas is used mainly to fuel power plants. The heating value generated by 1,118 million cubic feet of clean, efficient natural gas is equivalent to that produced by burning 200,000 barrels of fuel oil. Gas is also used to power domestic industries and the transport sector, and a lesser portion is used as a petrochemical feedstock in Thailand.

"This record level once again demonstrates Unocal's potential and readiness to serve the Thai gas market," said Brian Marcotte, company president. "With the start-up of the Pailin field later this year, Unocal's gas production will increase again to accommodate the market." Also located in the Gulf, Pailin is scheduled to supply 165 mmcfd to the Thai market in the initial phase. Unocal had previously targeted production of 1,100 mmcfd with the introduction of Pailin gas to the system.

Indigenous natural gas plays a significant role in Thai industrial growth . "By using indigenous gas, consumers get the highest value for their money. Overall, domestic gas is abundant, cleaner-burning, and much cheaper than other forms of energy," Marcotte said. Unocal had set the 1,100 mmcfd goal over three years ago, and had invested, re-engineered, and reorganized itself to reach the target. "Our competent and energized workforce deserves all the credit," he concluded. Over the past three years, the company has drilled 331 wells, set 15 platforms and laid 100 kilometers of interfield pipelines to enable this production level.

Unocal Thailand started producing natural gas and condensate from the Erawan field in 1981. It currently produces for co-venturers Mitsui Oil Exploration Co., Ltd. and PTT Exploration and Production Public Co., Ltd. Besides being the country's leading producer of energy resources, Unocal is a partner in Thailand's first independent power producer (IPP) plant, located in Si Racha, Chon Buri.

Updated: April 1998