press release

Unocal units sign gas sales agreement for new Bangladesh production

El Segundo, Calif., Nov. 8, 2004 - Unocal Corporation (NYSE: UCL) today said that two of its subsidiaries have signed a natural gas purchase and sales agreement (GPSA) with Petrobangla, the Bangladesh Oil & Gas Corporation, to develop and produce natural gas from the Bibiyana field.

Under the agreement, Unocal's minimum production will be 200 million cubic feet (mmcf) of gas per day (gross) from the field beginning in the fourth quarter 2006. The government of Bangladesh has indicated that it intends to nominate between 250 and 300 mmcf per day. Minimum production sales volumes under the GPSA increase to 400 mmcf/day (gross) at the end of 2008.

Unocal Bangladesh Block 12, Ltd., is operator of the Bibiyana field. Unocal Bangladesh Block 12 and Unocal Bangladesh Exploration, Ltd., together have a 100-percent working interest in the production-sharing contract (PSC) covering the Bibiyana field.

"Development of the Bibiyana field will help meet Bangladesh's growing need for natural gas supplies," said Andrew L. Fawthrop, president and managing director of Unocal Bangladesh, Ltd. "Our goal is to assist Petrobangla in developing the country's energy resources. We are committed to providing gas from the Bibiyana field in an efficient and environmentally responsible manner, while conducting safe and honest business operations. Like our Jalalabad and Moulavi Bazar fields, we are confident that Bibiyana can become one of the most cost-efficient sources of natural gas for Bangladesh."

Total development cost for the project, including up to 15 development wells, has been estimated at US$230 million. Unocal plans to build a gas processing plant with an initial capacity of 300 mmcf/day. The plant capacity is expected to expand to approximately 600 mmcf/day as field production ramps up.

The Bibiyana field is located on Block 12 in the northeast district of Habiganj. The development plan also includes two pipelines to connect the Bibiyana field to the national distribution grid.

Unocal, through subsidiaries, is producing 180 mmcf/day of natural gas from the Jalalabad field on block 13. In the second quarter 2005, completion of the Moulavi Bazar field development is expected to add another 70 to 100 mmcf/day of production. Both of these fields produce gas for sale to Petrobangla. In total, Unocal subsidiaries currently supply almost 15 percent of Bangladesh's natural gas requirements.

About Unocal Corporation

Unocal is 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 Asia and North America.

This news release contains forward-looking statements about matters such as drilling and development plans and costs, production rates, timing and growth, sales and transactions with third parties, and nominations from the government of Bangladesh. Although these statements are based upon Unocal's current expectations and beliefs, they are subject to known and unknown risks and uncertainties that could cause actual results and outcomes to differ materially from those described in, or implied by, the forward-looking statements, including volatility in commodity prices; Unocal's ability to develop and produce the resources discussed in this release in a timely and cost-effective manner; local demand, infrastructure and the distance to markets for Unocal's hydrocarbon production; the accuracy of estimates and judgments regarding hydrocarbon resources and formations; decline rates of producing properties; adverse geological and other operational factors; the extent of Unocal's operating cash flow and other capital resources available to fund its capital expenditures; international and domestic regulatory, political, and economic factors; negotiations with, and performance by, foreign government entities, independent contractors, equipment suppliers and other third parties; competition within Unocal's highly competitive industry; and other risks and uncertainties discussed in Unocal's 2003 Annual Report on Form 10-K, as amended, and subsequent reports filed by Unocal with the Securities and Exchange Commission (SEC File No. 1-8483). Copies of Unocal's SEC filings are available from Unocal by calling 800-252-2233 or from the SEC by calling 800-SEC-0330. The reports are also available on the Unocal web site. Unocal undertakes no obligation to update the forward-looking statements in this news release to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.

Updated: November 2004