press release

Unocal sets Thailand gas production record; further increases expected

El Segundo, Calif., Jan. 4, 1996 -- Unocal Corporation said today that gross daily production from its Gulf of Thailand operations averaged nearly 920 million cubic feet per day in late November and early December, setting a new delivery record.

Unocal also achieved a one-day delivery record of 978 mmcf of gas and 34,862 barrels of condensate on Dec. 8. For the year 1995, Unocal's Thailand operations averaged 720 mmcfd of natural gas, up from 704 mmcfd in 1994.

"The new production records demonstrated our ability to sustain significantly higher production when the Petroleum Authority of Thailand's (PTT) second pipeline to Rayong comes into service early next year," said Brian W. G. Marcotte, president of Unocal Thailand. Unocal's output has been constrained due to limited pipeline capacity from the offshore fields.

Unocal Thailand is operator and holds an average 65 percent net interest in eight natural gas fields in the Gulf of Thailand.

"We expect gas deliveries to rise to 900 to 950 mmcfd in the second quarter 1996 when the new pipeline goes into operation," Marcotte said. The company plans to install four additional production platforms and drill 92 more wells during the year. Gross capital spending for 1996 is projected at $258 million ($160 million net to Unocal), up 54 percent from 1995.

Marcotte noted that the increased production will help to meet growing demand for natural gas by the Electrical Generating Authority of Thailand (EGAT), as well as the needs of two new gas separation plants operated by PTT and two new domestic refineries. "We will be extremely active in 1996 to take advantage of greater gas sales opportunities over the next three years," Marcotte said.

During 1995 Unocal continued to reduce production costs by utilizing innovative development methods, such as slimhole drilling. During the year, Unocal installed four production platforms and drilled 60 wells. The company currently operates more than 70 platforms in the Gulf of Thailand.

Also during 1995 the company drilled 16 successful exploration, appraisal and delineation wells, a 70 percent success rate. Unocal drilled additional successful appraisal wells in the Pailin in field, and the company is continuing negotiations on a sales contract with PTT for production from this major new field.

Updated: January 1996