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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: February 20, 1996
UNOCAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-8483 95-3825062
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 726-7718
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ITEM 5. OTHER EVENTS
On February 20, 1996, the following news release was issued:
UNOCAL, NUEVO ENERGY SIGN AGREEMENT
FOR SALE OF UNOCAL'S CALIFORNIA OIL AND GAS ASSETS
El Segundo, Calif., Feb. 20 -- Unocal Corporation said today that its Union
Oil Company of California subsidiary and Nuevo Energy Company signed an asset
purchase agreement for the sale of Unocal's crude oil and natural gas assets in
California.
Torch Energy Advisors Inc. negotiated the sale on behalf of Nuevo, a
company Torch formed in 1990. Torch's operating subsidiary will operate the
Unocal properties for Nuevo. Torch and Nuevo are based in Houston, Tex.
Under the terms of the agreement, Unocal will receive approximately $500
million from the sale of the properties. The final cash settlement will be set
at the closing, which is expected by the end of March. In addition, beginning in
1998, the company could receive further payments that are contingent upon the
price per barrel from the properties' future oil production.
"The proceeds from this sale will give Unocal additional flexibility to
pursue significant growth opportunities in Central and Southeast Asia, as well
as reduce current debt levels," said Roger C. Beach, Unocal chairman and chief
executive officer.
The sale includes Unocal's interests in 68 oil and gas fields, including 11
producing platforms off the California coast in state and federal waters.
Unocal's average net daily production from the upstream assets in the proposed
sale was 27,000 barrels of oil and 59 million cubic feet of gas during 1995. The
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sale of this production is not expected to have a material effect on the
company's future operating earnings.
The sales agreement is subject to certain regulatory consents, approvals
and waiting periods.
Torch currently operates the Point Pedernales unit offshore California and
several onshore fields near Vandenberg Air Force Base in Santa Barbara County
that were purchased from Unocal in 1994.
Unocal has approximately 600 employees involved in its California oil and
gas operations. While many of those employees will be offered positions with
Torch or at other Unocal operations, some layoffs are expected.
Nuevo (NYSE: NEV) is an independent oil and gas company, engaged primarily
in the acquisition, development, production and exploration of oil and gas
properties. Torch Energy Advisors Inc. is an asset management company offering
services through investment management, property management and oil and gas
marketing.
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
UNOCAL CORPORATION
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(Registrant)
by: CHARLES S. MCDOWELL
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(Charles S. McDowell,
Vice President and Comptroller)
Dated: February 20, 1996
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