Unocal Acquires Amoco Stake in Gulf of Thailand Blocks 5 and 6

Unocal Thailand, Ltd. has reached agreement with BP America Production Co. for an affiliated company to purchase all of the shares of Amoco Thailand Petroleum LLC. Amoco Thailand Petroleum is operator and 50-percent owner of the concession covering Blocks 5 and 6 in the Thai-Cambodia Overlapping Claims Area (OCA) in the Gulf of Thailand. Terms of the purchase were not disclosed. Unocal Thailand is a wholly owned subsidiary of Unocal Corporation. Idemitsu Oil & Gas Co., Ltd. holds the remaining 50-percent working interest in Blocks 5 and 6.

Blocks 5 and 6 cover a current combined area of 10,155 square kilometers (3,900 square miles) and have been held under a moratorium since the early 1970s pending resolution of the OCA. In June 2001 the governments of Thailand and Cambodia signed a memorandum of understanding to provide a framework for the joint discussions. Under the terms of the MOU, Blocks 5 and 6 will be delimited by a boundary line into separate Thai and Cambodian parts.

"Although the final resolution of the OCA will take some additional time to complete, purchasing Amoco Thailand shares shows Unocal's commitment to long-term growth in Thailand," said Randy Howard, president of Unocal Thailand. "These additional blocks will complement the company's existing blocks in the OCA (10, 11, and parts of 12 and 13). We look forward to working with the governments of Thailand and Cambodia to reach a speedy resolution of all remaining issues."

Once the boundary issues are resolved, Unocal Thailand expects to conduct a 3D seismic survey on the blocks in the first year, followed by exploration drilling in the following years.

Unocal Thailand was the first gas producer in the Gulf of Thailand and is operator for a current contracted volume of gas of more than 1 billion cubic feet per day. Recently the company increased oil production from the northern area of its existing concessions.