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Unocal Pulls Out Of Central Asia As Low Prices Halt The Caspian Oil Rush.

Unocal has closed its offices in Turkmenistan, Kazakhstan, Uzbekistan and Pakistan. It is pulling out of Central Asia as oil prices are falling and the attraction of the Caspian is fading away. With effect from Dec. 4, Unocal formally withdrew from the Central Asian Gas consortium, which was promoting a major gas pipeline to run 1,600 km from eastern Turkmenistan to Pakistan through Afghanistan.

Unocal also cancelled a project to build a crude oil pipeline which was to run along the same route to Pakistan's Arabian Sea port of Gwadar, where it was planning to build a tanker-loading terminal. Both the gas and oil pipelines and the terminal were to cost about $8 bn. Last month Unocal withdrew from another consortium which had proposed to build a $2.9 bn gas pipeline from Turkmenistan to Turkey (see Gas Market Trends). Because of falling oil prices, the US company intends to cut capital spending in 1999 by $650m and is reassessing activities everywhere.
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Publication:APS Review Oil Market Trends
Geographic Code:9KAZA
Date:Dec 14, 1998
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