UNOCAL TO SELL CALIFORNIA OUTLETS TO TEXAS FIRM.Byline: Gregory J. Wilcox Daily News Staff Writer
Unocal Corp. will sell its California oil and gas operations to Nuevo Energy of Houston for $500 million and use the money to expand its international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , the companies said Tuesday.
The deal will cost some Unocal workers their jobs, but officials at both companies could not say how many.
About 600 people work on Unocal properties in the state, with most concentrated in the Central and Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, areas. Many of them will be hired by Houston-based Nuevo, considered an "independent" oil company because it is much smaller than so-called "majors" like Unocal.
"I don't think it's any secret that an independent uses less people than the majors," said Nuevo spokeswoman Molly Jones. "We're going to give first preference to Unocal employees and look to the California work force for all the employees."
Houston-based Torch Energy Advisers Inc. negotiated the sale on behalf of Nuevo. Torch formed Nuevo in 1990 and will operate the California properties.
The deal, expected to close by the end of March, covers Unocal's interests in 68 oil and gas fields, including 11 producing platforms off the California coast.
Torch currently operates the Point Pedernales unit in the ocean off Vandenberg Air Force Base Vandenberg Air Force Base, U.S. military installation, 3,456 acres (1,399 hectares), SW Calif., near Lompoc; chief Pacific coast launch site for military satellites. and several onshore fields near the military complex.
The sale will help Unocal reduce debt and expand foreign operations.
"The proceeds from this sale will give Unocal additional flexibility to pursue significant growth opportunities in Central and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. ," said Unocal chairman Roger C. Beach.
Unocal operates a big refinery near the Port of Los Angeles The Port of Los Angeles is located on San Pedro Bay in the San Pedro neighborhood of Los Angeles, approximately 20 miles (30 km) south of downtown. Also called Los Angeles Harbor and WORLDPORT LA . Last year, the company began decentralizing de·cen·tral·ize
v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es
1. To distribute the administrative functions or powers of (a central authority) among several local authorities. its operations in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . The corporate offices moved to El Segundo and other workers transferred to Brea and Costa Mesa in Orange County.
The deal should benefit both companies, said analyst Michael D. Smolinski at First Albany Corp.