Unocal Will Not Withdraw from Myanmar

Unocal said it is not considering withdrawing from its investment in the Yadana natural gas project in Myanmar. The company reiterated its position following a misleading and erroneous headline in a local newspaper.

Unocal officials met Tuesday with California Treasurer Phil Angelides and New York comptroller Alan G. Hevesi, who asked Unocal to consider withdrawing from its investment in Myanmar. In that meeting, Unocal Executive Vice President and Chief Financial Officer Terry G. Dallas said that withdrawal from the Yadana project is not under consideration. The company did agree to take under advisement the request by Angelides and Hevesi to provide an analysis of staying in the Yadana project.

Unocal assured Angelides and Hevesi that Unocal has done its due diligence in evaluating risks associated with the Yadana project. Dallas pointed out that the project is economically sound for Unocal stockholders and provides benefits to thousands of ordinary Burmese families in the region, including jobs, health care, education and economic opportunities. He also emphasized that the Yadana project provides essential supplies of natural gas for power generation to neighboring Thailand, a key U.S. ally.