press release

Unocal issues statement to correct false allegations concerning the Yadana Project in Myanmar

El Segundo, Calif., Dec. 12, 1996 -- In response to false allegations made about the Yadana natural gas project by demonstrators at the company's Los Angeles Terminal today, Unocal issued the following statement:

The Yadana natural gas pipeline project in Myanmar (Burma) is already providing significant benefits to the 35,000 people who live near the pipeline route, including good jobs, improved medical care, new and refurbished school facilities, electrical power and a wide range of local self-sustaining economic initiatives, including pig, poultry, goat, cattle and dairy farming. When the project is completed, it will become a vital part of Myanmar's energy infrastructure, helping to move Myanmar into the world community.

All work on the Yadana project is done through paid labor. Workers receive their pay directly, with receipt stringently documented. Because its wages are about 30 percent higher than local average wage scales for the region, the project has received almost 2,000 voluntary applications for employment. Everyone working on the project must be at least 18 years of age, must pass a free, project-sponsored physical examination, and complete basic first aid, work safety and fire-fighting training.

All land required for the pipeline project will be purchased from local landowners, based on potential maximum crop yields, actual crop loss, and other factors. Under this policy, more than 300 villagers will be paid $1 million to acquire the 525 acres of land required for project infrastructure, roads, pipeline center and right-of-way. No land will be taken without fair compensation to the owners.

Since its inception, no villages have been relocated because of the pipeline project. This fact is documented by aerial photography taken over the life of the project.

The project is currently in the capital investment phase. The pipeline is scheduled to begin limited operations in 1998, and the government of Myanmar will not receive any significant income from the project until the year 2001 at the earliest.

The Yadana Project will not only develop a world class energy resource, it could also make feasible a proposed domestic energy project that will increase electricity supplies to Myanmar's capital city and provide substantial new sources of agricultural products for the country's vital farming industry.

Updated: December 1996