Unocal statement on withdrawal from the proposed
Central Asia Gas (CentGas) pipeline project
Updated 12/10/98

Effective December 4, 1998, Unocal has withdrawn from the Central Asia Gas (CentGas) pipeline consortium for business reasons. Unocal no longer has any role in supporting the development or funding of this project.

As a result of portfolio rationalization and successes around the world in Indonesia, Thailand, Vietnam, Bangladesh, Latin America, West Africa and the U.S. Gulf of Mexico, Unocal is concentrating on its core areas in this time of reduced oil prices.

Unocal had served as the development manager for the seven-member Central Asia Gas (CentGas) pipeline consortium, which was formed in October 1997 to evaluate and, if appropriate, to participate in the future construction of a gas pipeline from Turkmenistan through Afghanistan to natural gas markets in Pakistan and, potentially, India. Contrary to some published reports, Unocal was not a party to any commercial agreement with any individual Afghanistan faction.

Since the pipeline project was first proposed in 1995, there have been a number of complex issues that Unocal has taken very seriously. Unocal recognized the legitimate concerns regarding the treatment of women in Afghanistan. Consistent with our core values and business principles, Unocal provided humanitarian support and skills training to Afghanistan through CARE and the University of Nebraska at Omaha. Neither program was designed to provide pipeline construction skills training. These programs met or exceeded UN guidelines for doing fieldwork in Afghanistan. They included basic job skills training and education for both men and women, and elementary education for boys and girls. Unocal also supported earthquake relief efforts through the Red Cross and the United Nations.

NEWS RELEASE INDEX