Exploration & Development

NON-U.S. E&P FOCUS OF UNOCAL SPENDING HIKE

March 5, 1990

Unocal Corp. has hiked its capital and exploration budget by 22% to almost $1.5 billion from a year ago. The company's budget for the first time earmarks higher outlays for non-U.S. exploration than it does for U.S exploration. Unocal jumped its 1990 budget for capital spending alone to $1.27 billion from $1.05 billion in 1989. Of this year's total, U.S. outlays will rise to $858 million from $695 million in 1989, and non-U.S. spending will increase to $413 million from $355 million

Unocal Corp. has hiked its capital and exploration budget by 22% to almost $1.5 billion from a year ago.

The company's budget for the first time earmarks higher outlays for non-U.S. exploration than it does for U.S exploration.

Unocal jumped its 1990 budget for capital spending alone to $1.27 billion from $1.05 billion in 1989. Of this year's total, U.S. outlays will rise to $858 million from $695 million in 1989, and non-U.S. spending will increase to $413 million from $355 million last year.

Unocal's non-U.S. exploration budget, covering geothermal resources as well as oil and gas, will climb to $111 million from $76 million in 1989. U.S combined exploration spending will rise to $106 million from $92 million in 1989.

U.S. E&P DOWN

Total U.S. oil and gas exploration and production outlays will slip to $424 million from $427 million in 1989. Of that total, Unocal will boost U.S. oil and gas exploration spending to $99 million from $85 million.

A big hike in Unocal's non-U.S. oil and gas exploration outlays-to $101 million from $72 million in 1989-will pace overall foreign oil and gas E&P spending of $370 million in 1990, up from $343 million in 1989.

Non-U.S. E&P spending increases will focus on Thailand, Indonesia, Netherlands, and Ecuador.

Unocal will boost spending for geothermal projects to $84 million in 1990, plus another $14 million for geothermal exploration. That compares with respective geothermal capital and exploration outlays of $63 million and $10 million.

The company cites bigger outlays for developing geothermal resources in Indonesia for the increase.

DOWNSTREAM SPENDING JUMPS

Unocal also plans big jumps in downstream spending in 1990. Capital outlays for refining, marketing, and transportation segments will increase to $220 million from $143 million last year.

Major factors in the increase are construction of nitrogen oxide emission control equipment at Unocal's Los Angeles refinery and higher marketing investments on the West Coast and across the U.S. in its auto/truckstop system.

Unocal also will boost chemicals spending to $105 million from $37 million in 1989, due mainly to construction of a new polymers plant and expanded nitrogen fertilizer capacity.