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UNOCAL Deal with Brutal Junta



Attn: Burma Newsreaders
Re: Continuation of UNOCAL Deal with Brutal Junta
----------------------------------------------------

UNOCAL SIGNS MYANMAR GAS SALES AND PIPELINE AGREEMENTS   

    LOS ANGELES, Feb. 2 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today said
that full-scale development will begin on the Myanmar offshore natural gas
project, following the signing of gas sales and pipeline agreements this
week.  The $1 billion development will supply gas to Thailand, and
potentially to Myanmar, over a 30-year period. 

    The Yadana field, located in the Gulf of Martaban, south of Yangon,
Myanmar's capital, could contain natural gas reserves of more than 5 trillion
cubic feet (tcf).  Production is expected to begin in mid- 1998, leveling at
525 million cubic feet per day (mmcfd) by 1999.  Gas production could
eventually reach 650 mmcfd, including volumes for domestic consumption in
Myanmar. 

    The Myanma Oil and Gas Enterprise (MOGE) and the production sharing
contract participants -- Unocal Myanmar Offshore Co. Ltd., a unit of Unocal;
Total Myanmar Exploration and Production Ltd., the operator and a unit of
Total of France; and the Petroleum Authority of Thailand Exploration &
Production Public Co. Ltd. (PTTEP) -- signed the gas sales agreement in
Bangkok today to supply the gas to the Petroleum Authority of Thailand (PTT).
 Earlier in the week in Yangon, Unocal, Total and PTTEP agreed to form a
transportation company to build and operate the pipeline that will transport
the gas from the offshore field to the Thailand border. 

    Also signed in Yangon was a separate sales agreement by which Myanmar can
be supplied with 125 mmcfd of gas for domestic use.  A domestic pipeline from
the Yadana field to landfall south of Yangon will first need to be
constructed. 

    Unocal is a 33.25% shareholder in the pipeline project to Thailand; Total
holds 36.75%; and PTTEP, 30%.  MOGE has an option to acquire a 15 percent
interest which, if exercised, would reduce the other participants' interests
proportionately.  The 220-mile (350-kilometer) undersea pipeline will come
onshore in southern Myanmar and cross 40 miles (65 kilometers) of land to the
Thai border.  PTT will build and operate a 190-mile (300-kilometer) Thailand
segment from the border to a 2,800 MW power plant to be built at Ratchaburi
in southern Thailand. 

    "This type of cross-border energy development is vital to the region's
growth," said John F. Imle Jr., president of Unocal.  Unocal is developing
similar cooperative business concepts as we focus on bringing known resources
to the fast-growing Asian energy markets and increasing our resource base in
the region.  We are firm in our conviction that creating such new cooperative
arrangements will have a positive influence on the region's economic growth
and political stability."     Imle noted that the project will generate
significant economic and social benefits to the people of Myanmar.  Ongoing
operations are expected to generate well paying jobs, income and career
opportunities for several hundred Myanmar nationals. 

    Imle added, "Yadana will significantly expand Unocal's resource base in
Southeast Asia.  The economies of region are growing rapidly, requiring
additional energy supplies.  These agreements position Unocal to be a key
player in that growth."     In addition to its long-term operations in
Indonesia, Thailand and the Philippines, Unocal is currently pursuing
business opportunities in China, Vietnam, Cambodia and other Asian countries.


/CONTACT:  Barry Lane of Unocal, 213-977-7601/     (UCL) 


CO:  Unocal Corp. 


ST:  California 

IN:  OIL 

SU:


Transmitted: 95-02-02 00:00:00 EST
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