press release

Unocal to shift 250 jobs to Texas office from Lafayette; will maintain significant presence in Louisiana

Lafayette, La., Jan. 9, 2001 -- Unocal Corporation today said it will shift approximately 250 jobs to its facility near Houston, Texas, from its office in Lafayette, La. The transfers will occur over the next 10 to 12 months.

Approximately 50 to 100 employees will remain in Lafayette, which will serve as the operations office for Unocal's 33 Gulf Region USA field locations throughout the state and in federal waters offshore Louisiana. The Gulf Region USA operations include onshore crude oil and natural gas production in Texas, Louisiana and Alabama, as well as on the Gulf of Mexico shelf.

The company's Gulf Region field locations will not be affected, and more than half of its Louisiana workforce will remain in the state.

"This move will allow us to increase our growth focus on the Gulf Region," said Ken Butler, vice president of Unocal Gulf Region USA. "In addition to lowering our costs for travel and office space, making this move will increase our exposure to new business opportunities and access to employment markets for geoscience and engineering professionals."

Butler went on to note that Louisiana will continue to play an important part in Unocal's Gulf of Mexico operations. "We have enjoyed a long and positive presence in Lafayette and the state of Louisiana," he said. "Our continued presence in the community and the state will still be significant, and we want to maintain the relationships we have cultivated over the years."

Butler noted that most of the Lafayette-based staff personnel will be offered lateral positions at the Unocal facility based in Sugar Land, a suburb of Houston. The company has a comprehensive relocation package for the affected employees. Some jobs will be eliminated due to duplication of effort between the two locations. The company could not quantify how many jobs will be affected at this time, but said the number would be minimal relative to the size of the Gulf Region workforce.

Unocal's Sugar Land office currently houses employees from the company's International Energy Operations, Deepwater USA and Global Trade business units, as well as some Gulf Region USA personnel.

This news release contains certain forward-looking statements about Unocal's potential cost savings. 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 1999 Form 10-K and subsequent reports filed with the Securities and Exchange Commission. 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: January 2001