Unocal signs agreement for Bidadi power project in India
Bangalore, India, June 21, 1999 - Representatives of Unocal Corporation and Karnataka Power Corporation Limited today signed a shareholders agreement for a power plant joint venture project in India.
The KPC Bidadi Power Corporation joint venture project involves the development of a 200-megawatt (MW) power project in Bidadi near the city of Bangalore in Karnataka in southern India.
Charles R. Williamson, Unocal's executive vice president for International Energy Operations, said, "We are very pleased to have been selected to participate in this project, which is one of the first joint ventures between the public and private sector in India. Participation in the India power market is an important part of our long-term commitment to developing integrated energy solutions in India."
Neeraj Nityanand, Unocal Bharat Limited vice president and regional manager for Southern India, added, "Within two years following financial closure, the project should be producing much needed power for the nearby city of Bangalore and vicinity. We expect the initial phase to add approximately 1,500 million kilowatt-hours per year to the Bangalore grid. This will help the Karnataka state bridge the gap between their demand and current supply of electricity."
Total cost of the Bidadi project is estimated to be approximately US$200 million. Project financing is anticipated for 70 percent of the project. Of the remaining 30 percent equity portion, Unocal Bharat is anticipating a$14 million investment.
Unocal Bharat Limited is a wholly owned subsidiary of Unocal Corporation. The company is now involved in several projects in India that will help meet India's energy and infrastructure demands by development of gas resources, construction of power and pipeline projects and importing natural gas through both international pipelines as well as via LNG.
Forward-looking statements regarding future operations, capital spending, financing and business arrangements in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1998 Form 10-K report filed with the Securities and Exchange Commission.
Updated: June 1999