SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) June 3, 1998
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UNOCAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-8483 95-3825062
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(Commission File Number) (I.R.S. Employer Identification No.)
2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245
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(Address of Principal Executive Offices) (Zip Code)
(310) 726-7600
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(Registrant's Telephone Number, Including Area Code)
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Item 5. Other Events.
On June 3, 1998 the following news release was issued:
Unocal reviews restructuring options
for non-E&P operating business units
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El Segundo, Calif., June 3, 1998 - Unocal Corporation today said it is
reviewing various possible restructuring options for the company's Diversified
Business Group, which includes certain non-exploration and production business
units. The move is part of a continuing transformation of Unocal into a global
energy resource and project development company that is focused on the U.S. Gulf
of Mexico region, Central and Southeast Asia, Latin America and other areas.
"With this new direction for Unocal, the company and the stockholders
would benefit by focusing our management and capital on our core businesses -
oil and gas exploration, project development and other energy-related
opportunities," said Roger C. Beach, Unocal chairman and chief executive
officer. "The restructuring would be timely because of the resurgence in our
Spirit Energy 76 activities in the U.S. and our growing international portfolio,
which provide the best opportunities to create value for the company's
stockholders."
The company has engaged a financial advisor to review restructuring
options for Unocal's agricultural products business unit. Unocal is also
evaluating options for its carbon and minerals business unit and pipeline
operations.
"We are committed to realizing full value for these non-E&P assets,"
Beach said. "Each of these businesses is highly attractive and profitable. While
they don't fit into Unocal's long-term growth plans, we believe that they offer
opportunities for growth under some other ownership structure."
Beach said the company will evaluate options such as outright sales,
joint ventures, initial public offerings (IPOs), or spin-offs for the
Diversified Business Group
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units. Certain other non-E&P assets, including geothermal energy operations, are
not part of the restructuring evaluation.
Unocal's agricultural products unit manufactures and markets
nitrogen-based fertilizers. The company has urea and ammonia fertilizer
manufacturing plants in Kenai, Alaska. In addition, the unit has ammonia
production in Finley, Wash., and product upgrading facilities in Kennewick,
Wash., and West Sacramento, Calif.
Unocal's carbon and minerals business includes Molycorp, Inc., which
produces lanthanide products at Mountain Pass, Calif., and molybdenum at Questa,
N.M., and has a 44.82 percent ownership interest in a major niobium producer in
Brazil. In addition, carbon and minerals includes production and marketing of
petroleum coke and graphites.
Forward-looking statements in this news release are based on
assumptions about value, market, competitive, regulatory, operating and other
considerations. Actual results could differ materially.
For more information about Unocal and its activities, visit Unocal's
web site at www.unocal.com.
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Pursuant to the requirements 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
(Registrant)
Date: June 4, 1998 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
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