Unocal Thailand awards contract for new FSO to serve its crude oil development
Bangkok, Aug, 13, 2003 -- Unocal Thailand, Ltd., today signed an agreement with Teekay Shipping Corporation for long-term lease and management of a Floating Storage and Offloading vessel for its crude oil development project in the Gulf of Thailand.
The new vessel, to be named Pattani Spirit, will replace the tanker Sibeia that is now used to store crude oil produced from the Plamuk, Surat, Yala, Platong and Kaphong fields in the Gulf of Thailand.
Teekay Shipping Corporation, a Canadian-based, world leader in marine services, will convert their 1988-built Aframax tanker Namsan Spirit at a shipyard in Singapore. After the conversion, the unit will be re-named Pattani Spirit. Installation is scheduled for second quarter 2004.
"This 10-year contract demonstrates Unocal's continued long-term commitment to the Kingdom of Thailand. We see a great future for indigenous oil production," said Randy Howard, president of Unocal Thailand. "We look forward to continuing to help reduce the Kingdom's dependence on imported oil."
Unocal Thailand is currently producing an average of 20,000 barrels of crude oil (gross) per day from its Gulf of Thailand fields, which accounts for about one-fifth of the Kingdom's indigenous oil production. To date, the fields have produced about 8.5 million barrels of high-quality, light sweet crude since initial production in July 2001. The crude has been sold to domestic customers in Thailand and into the international market.
Unocal Thailand is the operator and holds 71.25-percent working interest in the Yala, Plamuk and Surat fields. Its co-venturers are Mitsui Oil Exploration Co., Ltd. (23.75%) and PTT Exploration and Production Public Company Limited (5%). Unocal Thailand also operates the Platong and Kaphong fields, and holds a 70-percent working interest in those fields, while Mitsui Oil Exploration holds the remaining stake.
About Unocal Thailand, Ltd.
Unocal has been producing natural gas and condensate in the Gulf of Thailand since 1981. Cumulative natural gas production is over 5 trillion cubic feet, and cumulative condensate production is nearly 190 million barrels. Current gross gas production from the 15 fields operated by Unocal totals more than 1 billion cubic feet per day, fulfilling about 30 percent of the country's total electricity demand.
About Unocal Corporation
Unocal Thailand is a wholly owned subsidiary of Unocal Corporation, one of the world's leading independent natural gas and crude oil exploration and production companies. Unocal's principal oil and gas activities are in North America and Asia.
This news release contains certain forward-looking statements about Unocal's future expected production rates. 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 2002 Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
U.S. investors are urged to consider closely the disclosure in Unocal's 2002 Annual Report on Form 10-K (SEC File No. 1-8483). 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.
Updated: August 2003