Unocal plans to invest heavily in Asia Pacific: Report
Tuesday, April 30 2002 - 02:04 AM WIB
"Unocal continues to invest heavily in the Asia region with a focus on (natural) gas business as there is lots of room for investment opportunities," Chuck Williamson, chairman and chief executive officer of Unocal Corp was quoted by the newswires.
"We see positive signs of economic recovery in the region and we want to grow along with it," he said.
Unocal has set total capital expenditures for 2002 for its oil and gas business at around US$1.6 billion, with about half of that amount to be allocated to the Asia Pacific region, said Williamson.
Some $400 million will be invested in Thailand and another 300 will go to Indonesia to expand local oil and gas businesses, he said.
In Thailand alone, the company plans to invest $4.3 billion over the next decade on top of an existing investment of $6 billion so far.
The Asia Pacific region plays a significant role in Unocal's oil and gas business contributing more than half of the company's total gas resources
In 2001, Unocal's worldwide net daily production of crude oil and condensate stood at 170,000 barrels, while natural gas production amounted to two billion cubic feet. Its net income last year amounted to $615 million.
"The company's earnings this year are expected to improve following rising oil prices and new development projects," said Williamson.
Revenue from Thailand last year amounted to $700 million.
Unocal's oil and gas exploration fields in Asia are located in Thailand, Indonesia, Myanmar, Vietnam, Bangladesh and China.
Unocal hasn't participated much in the Asian power business, but it is determined to penetrate this area as well, said Williamson.
Unocal's regional investment in power generation business is largely concentrated in Thailand. The company holds a 24 percent stake in Independent Power (Thailand), which supplies 700 megawatts a day to the state-run Electricity Generating Authority of Thailand.
Moreover Unocal and Electricity Generating PCL, EGCO Joint Ventures & Development Ltd., jointly hold a 30 percent stake in two power plants in Thailand's eastern seaboard area with a combined daily generating capacity of 277 MWs.
Unocal operates two power plants in Indonesia with a combined capacity of 440 MWs a day and another two power projects in the Philippines with a total daily capacity of 756 MWs.
"We're looking at the (natural) gas market as our primary investment in Asia. We also watch the market's movement closely in the power business for investment opportunities," said Williamson. (*)