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UNOCAL TO DEVELOP MAJOR GEOTHERMAL RESOURCE IN INDONESIA

 LOS ANGELES, March 1 /PRNewswire/ -- Unocal Corp. said today that its subsidiary, Unocal North Sumatra Geothermal Ltd. has signed an agreement with Pertamina, the Indonesian state oil company, to appraise and develop geothermal resources located in the Sarulla Contract Area in northern Sumatra.
 The Unocal subsidiary has simultaneously entered into a power sales agreement with Pertamina and PLN, the state-owned electric company, to generate up to 1,000 megawatts of electricity from geothermal steam and to deliver the electrical power to PLN's transmission system.
 Under the terms of the agreements, Unocal, as contractor to Pertamina, will be responsible for all aspects of development, including well drilling, steam production, and power plant financing, construction and operation. The agreements cover a 42-year period, including time for exploration and development of the reserves. Under the agreements, Unocal will produce and supply steam for 30 years to power plants that will be built as reserves are proven. At the end of the finance period for each power plant, ownership of that power plant will be transferred to PLN.
 "This has the potential to become one of the most significant energy resources in Unocal's portfolio," said John F. Imle Jr., president of Unocal's Energy Resources Division. "The Sarulla Block contains some of the best geothermal prospects that we've located worldwide" he said. "We're hopeful that these prospects will support more than 1,000 megawatts of generating capacity, which would be the energy equivalent of more than 300 million barrels of oil."
 Imle also noted that geothermal energy is a core business for Unocal, and the Sarulla project could significantly enhance the company's position as the world's largest developer of geothermal energy.
 Unocal will conduct exploration work to delineate the potential reserves for an initial 110-megawatt power plant, which could be on line in five to six years. Additional production facilities and power plants would follow.
 The Sarulla Contract Area is about 39 miles long and 10 miles wide, encompassing approximately 240,000 acres. It is located near Lake Toba, about 300 miles south of Medan, Sumatra's most populous city.
 PLN has an existing power grid near the Sarulla Block. Given Sarulla's proximity to Medan and Sumatra's growing demand for electricity, a substantial market already exists for the power to be generated.
 Darcel L. Hulse, president of Unocal North Sumatra Geothermal, said, "We are very pleased that the Republic of Indonesia has entrusted Unocal with operating a project of this importance to North Sumatra and the nation.
 "Pertamina, PLN and the Indonesian government have been extremely supportive and are working together to bring about the development of this environmentally preferable energy source for the benefit of the Indonesian people," said Hulse. "We believe this project will be an important contributor to Indonesia's growing economy and will be of significant help in meeting the nation's increasing electricity demand."
 -0- 3/1/93
 /CONTACT: Jeff Callender of Unocal, 213-977-7208/
 (UCL)


CO: Unocal Corp.; Pertamina; Unocal North Sumatra Geothermal Ltd. ST: California IN: OIL SU:

BP -- LA012 -- 7919 03/01/93 12:14 EST
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Publication:PR Newswire
Date:Mar 1, 1993
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