Release: Unocal receives merger proposal from CNOOC for $67 per share

(EL SEGUNDO, Calif., June 22)Unocal Corporation today said it has received a proposal from CNOOC Limited, an affiliate of China National Offshore Oil Company, to acquire all outstanding shares of Unocal for $67 per share in cash.

On April 4, 2005, Unocal agreed to be acquired by Chevron Corporation in a merger that offers Unocal stockholders an election, subject to proration, between $65 in cash, 1.03 shares of Chevron common stock and a combination of cash and Chevron commons stock for each Unocal share.

In connection with entering into the Chevron merger agreement, the Unocal board of directors recommended the transaction to Unocal stockholders. That recommendation remains in effect.

Unocal said that it intends to evaluate the CNOOC proposal in a manner consistent with the board's fiduciary duties and its obligations under the Chevron agreement. Unocal also said that there can be no assurance that the proposal would result in a definitive agreement with CNOOC.(end of release)