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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 23, 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) 726-7600
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ITEM 5. OTHER EVENTS
UNOCAL REPLACES 73% OF WORLDWIDE OIL, GAS PRODUCTION
IN 1995; FOREIGN PRODUCTION REPLACEMENT AT 136%
El Segundo, Calif., Feb. 23 -- Unocal Corporation today said it replaced 73
percent of its worldwide crude oil and natural gas production in 1995 as the
company continued developing its U.S. reserve inventory and focusing on
long-term, high return overseas projects.
The company said that it replaced 136 percent of its foreign production
on a barrel of oil equivalent (BOE) basis, with major oil and gas additions from
new and existing fields in Indonesia and Thailand and the initial booking of the
company's oil reserves in Azerbaijan.
"Our strategic focus has been on development of natural gas projects in
Central and Southeast Asia, and the foreign replacement ratio is evidence of the
success of that strategy," said Roger C. Beach, Unocal chairman and chief
executive officer. "We are emphasizing development of known resources in areas
with markets for those resources."
Beach noted that foreign oil and gas holdings account for nearly 48
percent of the company's total reserves, compared with 45 percent a year ago.
"We added more than 69 million BOE to our reserves in Indonesia," Beach said,
"as a result of our highly successful exploration program there. In addition,
our development and infill drilling program in Thailand added another 34 million
BOE to our reserve base."
He added that the company also booked new oil reserves in the Caspian
Sea. The new reserves, classified as a purchase by the company, are associated
with Unocal's 9.5 percent interest in the early oil production program with
Azerbaijan from three fields in the Caspian Sea.
"Looking forward, we expect to book additional reserves for the Yadana
natural gas project Myanmar as development proceeds over the next two years,"
Beach said. "We're also looking ahead at additional gas reserves in Thailand
once we have negotiated a sales contract for gas from the Pailin field."
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Unocal's domestic oil and gas reserve base declined, as the company
sold several producing properties in the Central U.S. and focused on developing
its proved reserves inventory in the Louisiana/Gulf Coast area. "About 30
percent of our domestic proved reserves are undeveloped," Beach said, "compared
with only 20 percent for our peer companies."
Worldwide, 135 million BOE came from discoveries and extensions. More
than 71 percent of these new reserves were in foreign projects. Approximately
103 million BOE, or 76 percent, of these new reserves, were natural gas.
At year-end 1995, Unocal's worldwide crude oil, condensate and natural
gas reserves totaled 1.79 billion BOE compared with 1.85 billion BOE a year
before. This included 6,765 billion cubic feet of gas (bcf) -- 63% of the
company's reserves, or 1.13 billion BOE -- and 667 million barrels of crude and
condensate (37% of the company's reserves).
Foreign natural gas reserves totaled 3,504 bcf, while domestic natural
gas reserves were 3,261 bcf.
Foreign crude oil and condensate reserves totaled 280 million barrels,
and domestic reserves totaled 387 million barrels.
Unocal calculates the conversion of natural gas to crude oil equivalent
at the ratio of 6.0 thousand cubic feet (mcf) to one barrel. The company changed
its gas conversion ratio from 5.3 mcf per barrel of crude oil to conform with
accepted industry practice.
UNOCAL CORPORATION
Crude Oil and Natural Gas Reserve Data
ESTIMATED PROVED RESERVES OF CRUDE, CONDENSATE AND NATURAL GAS
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Liquids Gas Oil Equivalent
(mmbbls) (bcf) (mmBOE)
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1995 Beginning Reserves 697 6,911 1,848
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Discoveries and Extensions 32 617 135
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Improved Recovery 19 -- 19
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Revisions 6 (35) --
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Purchases 20 7 21
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Sales (19) (54) (27)
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Total Adjustments 58 535 148
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Production 88 681 202
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1996 Beginning Reserves 667 6,765 1,794
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ESTIMATED PROVED RESERVES BY GEOGRAPHIC AREA (MILLIONS OF BOE)
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Other
U.S. Far East Foreign Total
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1995 Beginning Reserves 1,016 679 153 1,848
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Discoveries and extensions 39 89 7 135
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Improved Recovery 19 -- -- 19
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Revisions -- 15 (15) --
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Purchases -- -- 21 21
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Sales (27) -- -- (27)
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Total Adjustments 31 104 13 148
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Production 116 71 15 202
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1996 Beginning Reserves 931 712 151 1,794
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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)
Dated: February 23, 1996 By: /s/ CHARLES S. MCDOWELL
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Charles S. McDowell,
Vice President and Comptroller
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