PRESS RELEASE - Unocal invests US$1.5 billion in Indonesia

Mr. Roger C. Beach, Chairman of the Board of Director and CEO of Unocal Corporation and accompanied by Unocal Indonesia management including Mr. Brian W. G. Marcotte, President Unocal Indonesia, Mr. Effendi Situmorang, Sr. VP Business Services, Mr. Hardjono Dhanutirto, VP Government Relations and External Affairs and Mr. Mark D. Mosby, VP New Ventures conducted a courtesy call to Mr. Abdurrahman Wahid, President RI who was accompanied by Mr. Purnomo Yusgiantoro, Minister Energy and Mineral Resources, and Mr. Baihaki Hakim, President Director of Pertamina.

The highlights of the meeting were:

1. Investment in IndonesiaUnocal is committed to invest in Indonesia in the energy sector.

The total amount of investment for Unocal and its partners throughout the economic downturn period from 1997 to 2002 is anticipated to be approx. US$1.5 Billion in Oil and Gas and Geothermal sectors making Unocal one of the top investors in the country during this very difficult period.

The investment includes:

A. Offshore East Kalimantan Oil & Gas Exploration

An exploration campaign was conducted in the Makassar Straits beginning in 1996. Unocal drilled 83 deepwater wells and found 9 new discoveries including Merah Besar and West Seno oil and gas fields. As operator Unocal plans to develop the West Seno for a total outlay of approx. US$700 million including facilities, wells and pipelines. West Seno is expected to start up at year-end 2002 and is expected to produce oil at rates of 60,000 BOPD.

B. Offshore EastKal Gas Resources: 4-10 TCF

Unocal has discovered large gas resources in several structures, offshore Makassar Straits as a result of these exploration efforts. These gas resources will be used to supply additional LNG trains and sales contracts at Bontang, Indonesia's largest LNG facilities. The next train to be installed at Bontang will be Train "I" that will be fed by the new gas resources together with the already certified gas in the area. Train "I" is scheduled for start - up in mid 2005. The importance of this project for the Republic of Indonesia was underscored. Unocal is anxious to work with Pertamina and other potential suppliers in East Kalimantan to tap the additional large Hydrocarbon resources of the area. Unocal believes the gas reserves in the area to be significant and plentiful for future LNG supply.

2. Security of oil and gas operations:

Unocal is very committed to working as a partner of choice to Pertamina and the local communities. At the same time, Unocal's expectation is that the government of Indonesia must provide security for the oil and gas operations to restore the confidence of the outside investment community. Unocal remains committed to Indonesia and Unocal's operations will continue to produce oil and gas for the benefit of Indonesia.

3. Geothermal Energy:

Indonesia has many energy alternatives to be used to meet the nation's energy demand. Geothermal energy is one of the indigenous fuels that is clean and renewable. Unocal is the leading developer of geothermal energy in the world. In Indonesia, Unocal is working with Pertamina and PLN at the Gunung Salak Project that produces 330 MW of electricity. Unocal encourages the use and development this resource that is a unique feature of Indonesia among the countries of the world. (*)