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UNOCAL ANNOUNCES ACTION PLAN TO IMPROVE EFFICIENCY AND PROFITABILITY

UNOCAL ANNOUNCES ACTION PLAN TO IMPROVE EFFICIENCY AND PROFITABILITY
 LOS ANGELES, May 6 /PRNewswire/ -- Unocal Corporation's (NYSE: UCL) energy resource exploration and production group plans to sell or joint venture at least $350 million in non-strategic assets, eliminate at least 400 positions and take other significant measures to improve the efficiency and profitability of its operations worldwide, John F. Imle, Jr., Unocal senior vice president, Energy Resources, said today.
 The actions planned by energy resources are part of a company-wide effort announced last week. The company said it plans to generate at least $700 million in after-tax proceeds from selling or restructuring non-strategic assets and to improve after-tax cash flow by at least $200 million a year through permanent, company-wide operational changes and expense cuts, including significant employee reductions.
 Additional expense cuts and personnel reductions as well as asset sales for other operating divisions and corporate staff departments are still being developed.
 Unocal's energy resources group finds and produces crude oil, natural gas and geothermal energy.
 Most of the operating expense and personnel reductions for energy resources will take place over the next four months, and are designed to improve corporate after-tax cash flow by at least $100 million in 1993. The asset sale program will take about two years to generate at least $350 million in after-tax proceeds.
 "We've carefully developed an action plan to improve upstream financial performance," Imle said, "even in an environment of flat commodity prices. This plan will enable us to reduce both fixed and variable operating costs and generate proceeds from divesting assets."
 The expense and staffing cuts in the three operating divisions of the energy resources group -- North American Oil and Gas, International Oil and Gas and Geothermal -- will result primarily from a more tightly focused worldwide exploration activity, the consolidation of certain North American regional offices and a restructuring of geothermal and power generation businesses.
 In oil and gas exploration, Unocal has recently been active in some 150 geologic trends worldwide. That total will now narrow to about 50, to focus on those areas of highest potential company impact -- primarily "frontier" plays overseas.
 Various organizational restructurings are planned, including the consolidation of regional offices in Oklahoma City and Midland, Texas, into the company's Texas- Southeastern region located in Houston.
 Geothermal operations will be restructured to maximize cash flow and to capture strategic growth opportunities through the sale or joint venture of some assets.
 Specific staff reductions by function or location have yet to be finalized, and specific assets to be sold or restructured will be announced as appropriate.
 Most of the assets targeted for sale or restructuring are in North America. To assure maximum value for these assets, the company is developing a plan for strategic marketing of individual properties to prospective buyers.
 "These actions will improve the focus of our upstream activities, consistent with the stated corporate goal of maintaining or, preferably, increasing future production levels," Imle said. "Given Unocal's fine portfolio of exploration and development opportunities, the restructured organization should be able to continue the reserve replacement and value-added performance we've achieved during the past several years."
 -0- 5/6/92
 /CONTACT: Mike Thacher of Unocal, 213-977-6821/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU: RCN


CH -- LA014 -- 7018 05/06/92 11:04 EDT
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Publication:PR Newswire
Date:May 6, 1992
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