UNOCAL AGREES TO DEVELOP GEOTHERMAL RESOURCES IN NORTHWEST SUMATRA

Unocal North Sumatra Geothermal Ltd. has signed an agreement with Indonesia's Pertamina to appraise and develop geothermal resources in the Sarulla contract area of Northwest Sumatra. The Unocal Corp. subsidiary also signed an electrical power sales agreement with Pertamina and PLN, the state owned power company, to generate as much as 1 million kw of electricity from geothermal steam and deliver the power to PLN's transmission system.

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