EXHIBIT 99
Unocal
2141 Rosecrans Avenue, Suite 4000
El Segundo, California 90245
[UNOCAL LOGO]
NEWS RELEASE
Contact: Barry Lane (Media)
310-726-7731
Robert Wright (Investors)
310-726-7665
Unocal elects not to proceed with East China Sea E&P project
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El Segundo, Calif., Sept. 28, 2004 - Unocal Corporation (NYSE: UCL) and
the Royal Dutch/Shell Group today said they have elected not to proceed with
their participation in five contracts to explore for, develop, and market
natural gas resources in the Xihu Trough of the East China Sea.
Unocal East China Sea, Ltd., a Unocal subsidiary, and Pecten Orient
Company LLC, a subsidiary of the Royal Dutch/Shell Group, each hold a 20-percent
working interest in the contracts. Other participants are China National
Offshore Oil Corporation (CNOOC), 30-percent working interest; and China
Petrochemical Corporation (Sinopec), 30 percent.
"Over the past year, we have conducted a detailed resource assessment and
studied various development options," said Don R. Hansen, vice president of
Unocal International Energy Operations. "For commercial reasons we have elected
not to proceed with the project. We have enjoyed excellent cooperation with both
CNOOC and Sinopec, and we look forward to other opportunities to work together."
The Unocal and Shell affiliates entered into the Xihu Trough contracts in
August 2003. The contracts required a final investment decision to be made after
a 12-month period of appraisal and analysis.
Unocal expects to record a charge of approximately $10 million after-tax
in the third quarter 2004 for relinquishment of lands and settlement of
remaining obligations.
About Unocal Corporation
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Unocal is one of the world's leading independent natural gas and crude
oil exploration and production companies with principal operations in North
America and Asia. For more information about Unocal, visit the company's web
site at www.unocal.com.
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This news release contains forward-looking statements about the timing and
amount of Unocal's expected after-tax charge to earnings resulting from the
termination of the Xihu Trough contracts. Although these statements are based
upon Unocal's current expectations and beliefs, they are subject to known and
unknown risks and uncertainties that could cause actual results and outcomes to
differ materially from those described in, or implied by, the forward-looking
statements, including those discussed in Unocal's 2003 Annual Report on Form
10-K, as amended, and subsequent reports filed by Unocal with the Securities and
Exchange Commission (SEC File No. 1-8483). Copies of Unocal's SEC filings are
available from Unocal by calling 800-252-2233 or from the SEC by calling
800-SEC-0330. The reports are also available on the Unocal web site. Unocal
undertakes no obligation to update the forward-looking statements in this news
release to reflect future events or circumstances. All such statements are
expressly qualified by this cautionary statement.
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