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UNOCAL SUBSIDIARY COMPLETES PURCHASE OF SUBSTANTIAL PORTION OF SHELL REFINERY

 UNOCAL SUBSIDIARY COMPLETES PURCHASE
 OF SUBSTANTIAL PORTION OF SHELL REFINERY
 LOS ANGELES, Dec. 17 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) said today that its operating subsidiary, Union Oil Co. of California, had completed the purchase of a substantial portion of Shell's refinery in Carson, Calif.
 Unocal has assumed operation today of Shell's Wilmington site, one of the two refinery sites that Shell operated in Carson. Unocal acquired the 125,000 barrel per day crude unit, a coker, a gas oil hydrotreater and sulfur plants, assorted tankage and other related equipment at the site. Shell retained the lubricants compounding plant at the Wilmington site.
 Unocal will operate the Shell site and its existing Los Angeles Refinery in Wilmington, Calif., as a single unit. The Los Angeles refinery will be designated as the Unocal Wilmington plant, and the former Shell facilities will be called the Unocal Cars on plant.
 "This acquisition provides significant benefits to Unocal, making us one of the lowest cost refiners," said Richard J. Stegemeier, Unocal chairman, president and chief executive officer.
 "We will significantly lower our crude oil costs," Stegemeier said. "In addition, the hydrotreater and coker will enable Unocal to convert 85 percent of its raw material input to gasoline, jet fuel, diesel and low sulfur gas oil, compared with a 77 percent conversion rate today.
 "The end result will be significantly improved refining margins."
 Stegemeier noted that the addition of a hydrotreater enhances the company's capability to manufacture reformulated gasolines and eliminates the need to build its own hydrotreating plant. In September, Unocal suspended engineering, procurement and construction work on a hydrotreater project at its Los Angeles refinery.
 Under the terms of the purchase and sale agreement, Unocal also acquires Shell's interest in the Pier E marine terminal at Long Beach Harbor.
 In addition, the companies agreed that Unocal will purchase Los Angeles Basin and San Joaquin Valley heavy crude oil from Shell. This crude will enable Unocal to back out purchases of higher cost Alaska North Slope and foreign crudes.
 Unocal expected no interruptions at either plant as the company assumed operations today. Unocal plans to cease operation of its 108,000 barrel per day crude units and associated visbreaker units at the Wilmington plant in the first quarter of 1992.
 Approximately 100 Shell employees were hired by Unocal today to operate the Carson plant. The shutdown of the crude units at the Wilmington plant in 1992 will not result in any layoffs there.
 The companies did not disclose the purchase price or financial terms of the purchase and sale agreement.
 -0- 12/17/91
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU:


KJ -- LA010 -- 3047 12/17/91 15:03 EST
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Publication:PR Newswire
Date:Dec 17, 1991
Words:453
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