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UNOCAL CONSIDERS SALE OF IMPERIAL VALLEY GEOTHERMAL OPERATIONS

 UNOCAL CONSIDERS SALE OF IMPERIAL VALLEY GEOTHERMAL OPERATIONS
 LOS ANGELES, Aug. 19 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) said today it is considering the sale of its Imperial Valley, Calif. geothermal energy assets as part of a company-wide restructuring program announced earlier this year.
 Unocal has significant geothermal interests in the Brawley, Holtville, Salton Sea, Truckhaven, and Wister, Calif. areas. The company currently has geothermal operations at the southern tip of the Salton Sea, including geothermal resource production facilities and three electrical generating plants with a nominal capacity of 80 megawatts.
 "Geothermal is a profitable business for us, and we expect to obtain a premium price for these assets," said Richard J. Stegemeier, Unocal chairman and chief executive officer. "We intend to use some of the proceeds from this sale to help accelerate the development of undeveloped reserves in our core crude oil and natural gas businesses."
 During the course of any sale activities, Unocal will continue to seek new power contracts with investor-owned utilities through the upcoming Biennial Resource Plan Update (BRPU) bidding process. As part of the BRPU, about 250 megawatts of needed power in Southern California have been set aside for supply from renewable energies, including geothermal.
 "Unocal is in a strong position to compete for that portion of the new power generation contracts set aside for renewable energies," said Darcel Hulse, vice president, Geothermal Resources and Power Generation. Hulse noted that development of Unocal's acreage in the Salton Sea area could more than meet these power needs, using the company's proprietary technology for processing the highly saline geothermal brines in the area.
 In recent months, the company has sold its polymers and chemicals distribution businesses, its product terminals network in the Southeast United States and other assets. So far this year, asset sales have generated after-tax proceeds of nearly $330 million.
 The company expects to generate another $700 million in after-tax proceeds over the next two years from the sale of additional assets. The contemplated sale of the Imperial Valley geothermal operations is one of the assets to be offered under this program.
 -0- 8/19/92
 /CONTACT: Mike Thatcher of Unocal, 213-977-6821/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU:


BP -- LA021 -- 1381 08/19/92 13:42 EDT
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Publication:PR Newswire
Date:Aug 19, 1992
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