press release

Unocal unit signs geothermal exploration concession agreement in Nicaragua

El Segundo, Calif., August 29, 1997 -- Unocal Corporation today said its Unocal Geotermica Nicaragua, S.A. subsidiary signed an agreement for a new geothermal energy exploration concession in Nicaragua. This marks Unocal's first geothermal energy venture in Latin America.

The 100-square-kilometer El ajo-Santa Isabel concession, located east of Leon, is in the same volcanic complex as the San Jacinto-Tizate field, a proven geothermal resource.

"Nicaragua is a key part of our long-term growth strategy for geothermal development in Central America," said Randy L. Howard, Unocal vice president for worldwide geothermal operations. "There is not only significant geothermal potential in the region, but Nicaragua has opened the door for private power generation and the export of electricity to neighboring countries".

The concession agreement was signed in Managua, the capital city, by Howard and Mr. Octavio Salinas, Nicaragua's energy minister. Nicaraguan president Dr. Arnoldo Alemn presided at the signing ceremony which was also attended by U.S. Ambassador Lino Gutierrez.

"We are excited that the government of Nicaragua has selected Unocal to participate in its geothermal energy sector," Howard said. "This marks the beginning of a partnership with Nicaragua for the future development of this renewable resource. As the world leader in geothermal energy development, Unocal has a history of assisting countries in developing their geothermal resources by providing technical expertise and training to the local work force."

Unocal is the world's largest developer of geothermal energy with 30 years of experience in geothermal development in the United States, Indonesia and the Philippines.

Updated: August 1997