press release

Unocal Thailand sets new gas, condensate production record

Bangkok, Jan. 10, 1997 -- Unocal Thailand today announced a new natural gas output record from fields in the Gulf of Thailand. The company also delivered its milestone 100 millionth barrel of condensate last month.

The new gas production record, set on December 28, now stands at 1,070 million cubic feet a day (mmcfd). "This new record, from nine producing gas fields, resulted from the Petroleum Authority of Thailand (PTT)'s higher purchase requirement during the last week of the year," said Brian Marcotte, Unocal Thailand president.

The new record surpassed the previously announced one of 1,001 mmcfd, set on October 3, by 69 mmcfd. The previous record also resulted from PTT's higher requirement for gas during the period. "We are also pleased to have achieved record outputs at all fields. This achievement again underscores our capacity and readiness to supply more gas to Thai consumers once PTT's pipeline and onshore facilities are in full operation in 1997," Marcotte added.

For the month of December, the average daily gas output amounted to 955 mmcfd. For the whole year, the average gas output was 790 mmcfd, and average condensate output 27,850 barrels a day (b/d).

Also, Unocal delivered its 100 millionth barrel of condensate to its customers on December 11. Condensate, a petroleum liquid, occurs naturally in association with natural gas production.

Gas produced by Unocal Thailand, on behalf of its co-concessionaires Mitsui Oil Exploration and PTT Exploration & Production, for the most part fuels electricity generation by the Electricity Generating Authority of Thailand (EGAT). The rest is processed and sold by PTT to industrial and petrochemical plants. Condensate is sold domestically and exported for use in refineries and the petrochemical industry.

Unocal Thailand, the first and leading gas supplier to the Kingdom, is the operator of four gas producing contract areas in the central part of the Gulf. The latest gas sales agreement, signed in August 1996, is envisioned to add 165 mmcfd of capacity in 1998, with the possibility of reaching 330 mmcfd after the turn of the century. Exploration is underway in recently awarded concessions in the Andaman Sea, where wildcat drilling is expected in late 1997. Further expansion in natural gas production, inaugurated in 1981, is expected in 1997. To date, over 2.7 trillion cubic feet of gas has been produced.

Unocal nowadays plays a greater role in power generation for Thailand. In early 1997 the consortium of Thai Oil, Westinghouse, and Unocal Corporation is expected to sign an agreement with EGAT to launch the Kingdom's first independent power producer (IPP) project, based in Si Racha, Chon Buri. The project is scheduled to start delivering electricity in 1999.

Updated: January 1997