James H. Painter Sr. VP, Exploration and Technology Unocal Corporation Banc of America Securities

James H. PainterJames H. PainterSr. VP, Exploration and TechnologySr. VP, Exploration and Technology

Unocal CorporationUnocal Corporation

Banc of America Securities Banc of America Securities Energy & Power ConferenceEnergy & Power Conference

Lake Las Vegas, NevadaLake Las Vegas, NevadaNovember 16, 2004November 16, 2004

Preface

General – The following slides are being provided as part of Unocal’s conference presentation. These slides are not intended to be complete discussions of the matters referenced therein and should be viewed in the context of Unocal’s presentation and Unocal’s most recent Form 10-K, Form 10-Q and Form 8-Ks filed with the Securities and Exchange Commission (SEC) and Unocal’s most recent quarterly earnings release and other press releases, all of which are located at www.unocal.com. Forward-Looking Statements – This presentation, including the following slides, contains forward-looking statements about matters such as Unocal’s assessment of hydrocarbon formations and potential resources; drilling and development plans and operations; other objectives and plans for future operations; project start-up dates; production rates, timing and growth; cash flows and capital expenditures; and negotiations, sales and transactions with third parties. Although these statements are based upon Unocal’s current expectations and beliefs, they are subject to known and unknown risks and uncertainties that could cause actual results and outcomes to differ materially from those described in, or implied by, the forward-looking statements, including volatility in commodity prices and the effectiveness of Unocal’s hedging program; Unocal’s ability to find or acquire commercially productive oil and gas reservoirs and to develop and produce deepwater fields and other complex projects in a timely and cost-effective manner; local demand, infrastructure and the distance to markets for Unocal’s hydrocarbon production; the accuracy of Unocal’s estimates and judgments regarding hydrocarbon resources and formations; decline rates of producing properties; adverse geological and other operational factors; the extent of Unocal’s operating cash flow and other capital resources available to fund its capital expenditures; international and domestic regulatory, political, and economic factors; other risks associated with Unocal’s substantial international operations; negotiations with, and performance by, foreign government entities, joint venture partners, independent contractors, equipment suppliers, operators of properties in which Unocal has an interest and other third parties; competition within Unocal’s highly competitive industry; and other factors discussed in Unocal’s 2003 Annual Report on Form 10-K, as amended, and subsequent reports filed by Unocal with the SEC (SEC File No. 1-8483). Copies of Unocal’s SEC filings are available from Unocal by calling 800-252-2233 or from the SEC by calling 800-SEC-0330. The reports are also available on the Unocal web site. Unocal undertakes no obligation to update the forward-looking statements in this presentation, including the following slides, to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.

http://www.unocal.com/

Estimated Resource Potential Disclosures – The SEC has generally permitted oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Unocal uses the terms “resource potential” and “recovery potential” and provides other similar estimates of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines may prohibit Unocal from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by Unocal. Please refer to Unocal’s 2003 Annual Report on Form 10-K, as amended, for disclosures regarding Unocal’s estimates of its proved reserves as of December 31, 2003. Supplemental Non-GAAP Financial Measures – This presentation, including the following slides, includes disclosure of EBITDAX, which is a "non-GAAP financial measure" as defined under SEC regulations. EBITDAX is defined as net earnings before interest, taxes, depreciation, depletion and amortization, asset impairments, exploration expenses, dry hole costs, special items, and cumulative effects of accounting changes. Special items represent certain significant matters that positively or negatively impact net earnings and that management determines to be not representative of Unocal’s ongoing operations. Examples include: gain/loss from major asset sales; environmental remediation costs related primarily to inactive, closed or previously owned Unocal facilities and third party sites; costs or settlements associated with major restructuring plans; litigation settlement costs primarily associated with former Unocal operations or closed/inactive facilities; significant impairments due to changes in commodity prices; material damage to Unocal facilities or operations due to fire, explosion, earthquakes, storms or other "acts of god" not covered by insurance; certain costs associated with major acquisitions including litigation and significant trading derivatives; and insurance recoveries associated with former Unocal operations or for costs incurred in prior years. Unocal’s management believes that EBITDAX is helpful to investors and analysts because it facilitates a comparison of companies like Unocal that use the "successful efforts" accounting method with other companies in the exploration and production industry that utilize the "full-cost" method of accounting. EBITDAX is not a substitute for net earnings determined in accordance with GAAP as a measure of profitability or other GAAP financial measures. Special items excluded from EBITDAX do in fact positively or negatively impact net earnings. Other companies may define special items differently. Hence, EBITDAX may not be comparable with similarly titled amounts reported by other companies. A quantitative reconciliation of EBITDAX to GAAP net earnings is found in Unocal’s 2001-2004 Quarterly Fact Book, which is located in the investor relations section of Unocal’s web site.

Investors Ask: Why Unocal?

Clear line of sight to 2005–2008 production growth

Huge discovered Asia gas position (Thailand, Indonesia, Bangladesh, Vietnam)

Major resource potential remaining in Asia and Gulf of Mexico deepwater

Stabilized North American business (US onshore, GOM shelf, Alaska, Canada)

Net earnings per share *Net earnings per share * $3.48 per share$3.48 per share

EBITDAX per share *EBITDAX per share * $8.69 per share $8.69 per share

Increase in cash *Increase in cash * $376 $376

Debt / Total Cap reduced *Debt / Total Cap reduced * 46% to 39%46% to 39%

ROE / ROCE * ROE / ROCE * (annualized)(annualized) 24% / 16%24% / 16%

Reduction in net debt **Reduction in net debt ** $723$723

Common equity repurchases Common equity repurchases $150$150

Call of convertible securities Call of convertible securities $250$250

Pension plan contribution Pension plan contribution $100 $100

9 Months 2004 Financial Performance and9 Months 2004 Financial Performance andBalance Sheet ImprovementsBalance Sheet Improvements

($ in millions except share amounts)($ in millions except share amounts)

** First nine months Diluted First nine months Diluted**** 2003 Pro forma for Fin 46 Fin 46-R , 12/31/03 Net Debt: ($3,017 million) 2003 Pro forma for Fin 46 Fin 46-R , 12/31/03 Net Debt: ($3,017 million)

2005 Net Production OutlookFrom New Major Projects

Expected 4Q/05Expected 4Q/05 Production Production (BOE/D)(BOE/D)

GOM Deepwater GOM Deepwater – Mad Dog– Mad Dog 5,000 – 6,000 5,000 – 6,000

GOM Deepwater GOM Deepwater – K-2– K-2 5,000 – 6,000 5,000 – 6,000

Bangladesh Bangladesh – Moulavi Bazar– Moulavi Bazar 15,000 – 25,000 15,000 – 25,000

Azerbaijan Azerbaijan – AIOC Phase 1– AIOC Phase 1 ~ 18,000 ~ 18,000

Thailand Thailand – Pattani Oil Phase 2– Pattani Oil Phase 2 ~ 15,000~ 15,000

Total added production:Total added production: 55,000 – 70,000 55,000 – 70,000

AIOCAIOC• Phases 1 & 2 add Phases 1 & 2 add

~750 MBOD by 2007~750 MBOD by 2007

• Phase 3 (sanctioned Phase 3 (sanctioned 3Q04) adds ~300 3Q04) adds ~300 MBOD by 2009MBOD by 2009

Strong 2006+ Pipeline ofMajor Developments

BangladeshBangladesh• GPSA signed 11/8 for 4Q06 GPSA signed 11/8 for 4Q06

startup of 200 MMSCFDstartup of 200 MMSCFD

Gulf of Mexico Gulf of Mexico DeepwaterDeepwater

• Multiple discoveries Multiple discoveries (St. Malo, Tobago, (St. Malo, Tobago, Trident, Puma) Trident, Puma) come online near come online near end of decadeend of decade

Indonesia DeepwaterIndonesia Deepwater• Gendalo development Gendalo development

(Phase I) adds 250-300 (Phase I) adds 250-300 MMSCFD by late 2007MMSCFD by late 2007

• Gehem / Ranggas Gehem / Ranggas development planning development planning underway for end of decadeunderway for end of decade

ThailandThailand• Start-up of third Start-up of third

gas pipeline 2Q06 gas pipeline 2Q06 increases DCQ increases DCQ 80 MMSCFD80 MMSCFD

VietnamVietnam• 5-8 TCF of gas 5-8 TCF of gas

(gross unrisked) (gross unrisked) could come on near could come on near end of decadeend of decade

Drillbit Success Continues

Gulf of Mexico DeepwaterGulf of Mexico Deepwater

– Lower TertiaryLower Tertiary (St. Malo, Tobago, Trident discoveries; (St. Malo, Tobago, Trident discoveries; Multiple prospects in Keathley Canyon / Walker Ridge)Multiple prospects in Keathley Canyon / Walker Ridge)

– Miocene Miocene (Mad Dog, K-2, Puma discoveries; (Mad Dog, K-2, Puma discoveries; Sequoia drilling) Sequoia drilling)

Indonesia DeepwaterIndonesia Deepwater

– Successful appraisals on Gehem, Gula, Ranggas, SadewaSuccessful appraisals on Gehem, Gula, Ranggas, Sadewa

– First exploration on outboard PSCs scheduled First exploration on outboard PSCs scheduled late 2004 / early 2005late 2004 / early 2005

– Tarakan Basin oil wildcats scheduled 4Q 04Tarakan Basin oil wildcats scheduled 4Q 04

North AmericaNorth America

– Alaska, Permian, Canada, GOM shelf extensions Alaska, Permian, Canada, GOM shelf extensions

Thailand / Vietnam Thailand / Vietnam

– Arthit, S. Gomin, Blocks 48/95 & BArthit, S. Gomin, Blocks 48/95 & B

CongoCongoCongoCongo

AzerbaijanAzerbaijanAzerbaijanAzerbaijan

NetherlandsNetherlandsNetherlandsNetherlands

VietnamVietnamVietnamVietnam

AustraliaAustraliaAustraliaAustralia

MyanmarMyanmar ThailandThailand

BangladeshBangladesh

IndonesiaIndonesia

Production Production (2003)(2003)

965965 MMCFD MMCFD

79,000 79,000 BOPDBOPD

Reserves Reserves (12-31-03)(12-31-03)

1,1761,176 MMBOE MMBOE


965965 MMCFD MMCFD

79,000 79,000 BOPDBOPD


1,1761,176 MMBOE MMBOE

Production operationsProduction operations

Exploration provincesExploration provinces

UnocalUnocalInternational E&P Operations International E&P Operations

UnocalUnocalInternational E&P Operations International E&P Operations

Unocal InternationalFocused on Asia for 40+ Years

Leverage advantaged positions

– Thailand gas and Indonesia deepwater

Build large-scale businesses

– Azerbaijan, Bangladesh, Vietnam

Pursue regional expansion via farm-ins and asset acquisitions

Emphasize safety, development of national workforce, host country relations and community involvement

Our strategy . . .Our strategy . . .

AIOC Development ProjectAIOC Development Project

1,762 km (1,095 mi.) in length

85% complete as of 9/20/2004; project on schedule

First production expected 2Q 2005

70% of $2.95 billion cost financed

Main Export Pipeline (B-T-C)Main Export Pipeline (B-T-C)

Est. 3.9 to 6.9 billion barrels of oil recoverable by 2024

Now producing ~151,000 BOPD

Unocal has 10.28% interest

Phases 1 & 2 add 750,000 BOPD at peak – under construction

Phase 3 adds 300,000 BOPD at peak – sanctioned 9/20/2004

Novorossiysk

Ceyhan

TbilisiBlack Sea

Mediterranean Sea

Caspian Sea

42” diameter 1,740 km

Supsa

Baku

AIOC Contract Area AIOC Contract Area

Existing

Under Construction

AIOC Production and Operating Cash Flow

Unocal Net Under Production Sharing Agreement

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 2010

0

100

200

300

400

500

600

700

800

Production at $30 Production at $40

AT cash flow at $30* AT cash flow at $40*

* After-tax cash flow from operations

~ 1 MMBOED gross in 2009~ 1 MMBOED gross in 2009

Expected production, MBOED Expected after-tax cash flow, $ MM

Sangachal Terminal

Phase 3 (Deepwater Guneshli)

EOP (Chirag) Phase 1

(Central Azeri)

Azeri-Chirag-Guneshli (ACG) FieldAzerbaijan International Operating Company

Phase 2 (West Azeri) Phase 2

(East Azeri)

Estimated recoverable oil: 3.9 to 6.9 billion barrels

C. Azeri Jacket – Installation completed May’04C. Azeri Jacket – Installation completed May’04 C. Azeri Topsides – 96% completeC. Azeri Topsides – 96% complete (Float-over scheduled Oct. 2004)(Float-over scheduled Oct. 2004)

Offshore Pipelines – 88% completeOffshore Pipelines – 88% complete Sangachal Terminal Expansion – 92% completeSangachal Terminal Expansion – 92% complete

Azeri Project ProgressAzeri Project Progress

Thailand – Myanmar – VietnamThailand – Myanmar – VietnamEnergy Demand Driving New InfrastructureEnergy Demand Driving New Infrastructure

Andaman Andaman SeaSea

Andaman Andaman SeaSea

LAOSLAOSLAOSLAOS

CAMBODIACAMBODIACAMBODIACAMBODIA

MYANMARMYANMARMYANMARMYANMAR

THAILANDTHAILANDTHAILANDTHAILAND

TavoyTavoy

VIETNAMVIETNAMVIETNAMVIETNAM

YangonYangonYangonYangon

M8

M5

RatchaburiRatchaburiRatchaburiRatchaburi

Erawan

PailinArthit

SatunUnocal1-2-3-4

Block ABlock B52/97

Badamyar

Yadana

SeinM6

RayongRayongRayongRayong

3rd gas pipeline 20063rd gas pipeline 20063rd gas pipeline 20063rd gas pipeline 2006Oil expansion 2005Oil expansion 2005 Oil expansion 2005Oil expansion 2005

Lease areasLease areas MyanmarMyanmarThailand Thailand VietnamVietnam

PipelinesPipelinesExistingExistingProposedProposed

Power plantsPower plants

IndustrialIndustrial

Gas pipeline 2008Gas pipeline 2008 Gas pipeline 2008Gas pipeline 2008

BangkokBangkokBangkokBangkok

Pipeline debottlenecking 2004Pipeline debottlenecking 2004 Pipeline debottlenecking 2004Pipeline debottlenecking 2004

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2004

2003

2002

2001

2000

1999

Source: Electricity Generating Authority of ThailandSource: Electricity Generating Authority of Thailand

Thailand Power ConsumptionThailand Power ConsumptionRapid Growth Continues Rapid Growth Continues

Gigawatt-hoursGigawatt-hours 1999 - 20041999 - 2004

Unocal Gulf of Thailand Contract Volumes

Expected to Increase

20032003 1,0901,090 590590

July 2006 *July 2006 * 1,2201,220 670670

Beyond 2006 *Beyond 2006 * 1,6101,610 920920

MMCFD MMCFD

DateDate GrossGross NetNet

* per Heads of Agreement9 mo. 2004 actual 9 mo. 2004 actual

GOT net production:GOT net production:

636 MMCFD636 MMCFD

Unocal Thailand – Future GrowthThere’s Still a Long Way to Go . . .

Life Expected to Date Remaining Inventory

171 Projects ~ 500

1,920 Wells ~ 5,700

95 Wellhead platforms ~ 350

7.1 Capital ($B gross) ~ 9.0

6.7 Resource (risked TCFE gross) ~ 13.2(Produced)

Vietnam − An Emerging Gas Market

B-KQ-1X

HO CHI MINH CITYHO CHI MINH CITY

Unocal1-2-3-4Unocal1-2-3-4

Block 52/97Block 52/97

Block 48/95Block 48/95

Block BBlock B

Malay BasinMalay Basin

ArthitArthit

Proposed pipeline fromKim Long discovery

Unocal Vietnam BlocksUnocal Vietnam Blocks

43% average W.I. 43% average W.I.

2.7 million acres2.7 million acres

5-8 TCF est. potential 5-8 TCF est. potential (gross unrisked)(gross unrisked)

10 gas discoveries in 10 gas discoveries in 3 fields to date3 fields to date

Pipeline / power Pipeline / power feasibility studies 2004feasibility studies 2004

Unocal Vietnam BlocksUnocal Vietnam Blocks

43% average W.I. 43% average W.I.

2.7 million acres2.7 million acres

5-8 TCF est. potential 5-8 TCF est. potential (gross unrisked)(gross unrisked)

10 gas discoveries in 10 gas discoveries in 3 fields to date3 fields to date

Pipeline / power Pipeline / power feasibility studies 2004feasibility studies 2004

380 km

O MONO MON

East Kalimantan, IndonesiaA Major Oil and Gas Province

Indonesia(E. Kalimantan)

Malaysia

Singapore

Brunei

Unocal Indonesia Deepwater

Developments

Santan Santan terminalterminalSantan Santan terminalterminal

SenipahSenipahterminalterminalSenipahSenipahterminalterminal

BontangBontangLNG plantLNG plantBontangBontang

LNG plantLNG plant

Gendalo Complex2200-3400 BCF*

20-35 MMBC*

West Seno

Unocal PSC areasUnocal PSC areas

Gehem / Ranggas ComplexGehem / Ranggas Complex

10 wells to date, 5,200 ft. 10 wells to date, 5,200 ft. water depth water depth

Development concept selection Development concept selection under way under way

Development plan expected 2005 Development plan expected 2005

Undrilled satellite prospectsUndrilled satellite prospects

Gendalo ComplexGendalo Complex

8 wells to date, 2,500–5,000 ft. 8 wells to date, 2,500–5,000 ft. water depthwater depth

F.E.E.D. under wayF.E.E.D. under way

Development decision expected Development decision expected 20052005

First production expected 2007 First production expected 2007 at 250-300 MMCFD (Phase 1) at 250-300 MMCFD (Phase 1)

Gehem / Ranggas ComplexGehem / Ranggas Complex

10 wells to date, 5,200 ft. 10 wells to date, 5,200 ft. water depth water depth

Development concept selection Development concept selection under way under way

Development plan expected 2005 Development plan expected 2005

Undrilled satellite prospectsUndrilled satellite prospects

Gendalo ComplexGendalo Complex

8 wells to date, 2,500–5,000 ft. 8 wells to date, 2,500–5,000 ft. water depthwater depth

F.E.E.D. under wayF.E.E.D. under way

Development decision expected Development decision expected 20052005

First production expected 2007 First production expected 2007 at 250-300 MMCFD (Phase 1) at 250-300 MMCFD (Phase 1)

Gehem / Ranggas Complex

1950-2900 BCF* 73-150 MMBO*

KALIMANTANKALIMANTAN

MALAYSIAMALAYSIA

BRUNEIBRUNEI

* Discovery volumes

Indonesia − Bontang LNG PlantIndonesia − Bontang LNG PlantGas Contracts & Market PotentialGas Contracts & Market Potential

Existing contractsExisting contracts Market share set through Market share set through

20102010

Opportunity to fill existing Opportunity to fill existing contract requirementscontract requirements

Early contracts / Spot mkt.Early contracts / Spot mkt. Up to 500 Up to 500 MMCFDMMCFD spare spare

capacity availablecapacity available

Fill-up contractsFill-up contracts Replace existing contracts Replace existing contracts

beyond 2010 beyond 2010

Plant Inlet Capacity MMCFD

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

'04 '06 '08 '10 '12 '14 '16 '18 '20

Existing contracts

Fill-up contracts

Early contracts / Spot market

Gendalo Gendalo A World-Class ReservoirA World-Class Reservoir

West Seno – Faulted, stacked channel sandswith compartmentalization; difficult to image

West Seno – Faulted, stacked channel sandswith compartmentalization; difficult to image

... . ......... ..

.. ....

. ... ....

... . .. ......

......

....... .. .. ..

..Gendalo – Thick fan sands with good continuity; easily imaged

Gendalo – Thick fan sands with good continuity; easily imaged

. .

... ...... ..

.. . ...

. ....... . . ... . ...

..... . .... .

.... .. . ... .... ....

.

. .......……..………..……………

.....……..………..……………

Initial Production Rates (per well)

West Seno: 1 – 4 MBOE/DGendalo: 50 – 80 MMCF/D

Indonesia – New Oil Plays 4Q Indonesia – New Oil Plays 4Q 20042004

Tarakan BasinTarakan Basin

Cumulative production Cumulative production to date: 370 to date: 370 MMBO, 1.4 TCF MMBO, 1.4 TCF (onshore & shallow (onshore & shallow water)water)

No DW wells No DW wells

2 wells planned 4Q042 wells planned 4Q04

Kutei BasinKutei Basin

First well in Papalang First well in Papalang PSC to be drilled 4Q04PSC to be drilled 4Q04

Tarakan BasinTarakan Basin

Cumulative production Cumulative production to date: 370 to date: 370 MMBO, 1.4 TCF MMBO, 1.4 TCF (onshore & shallow (onshore & shallow water)water)

No DW wells No DW wells

2 wells planned 4Q042 wells planned 4Q04

Kutei BasinKutei Basin

First well in Papalang First well in Papalang PSC to be drilled 4Q04PSC to be drilled 4Q04

Tarakan BasinBukat-Ambalat PSCs

Kutei BasinPapalang PSC

BangladeshWorld Class Gas Resources

Producing ~195 MMCFD (gross) from Jalalabad; September 2004

Moulavi Bazar field development 70 -100 MMCFD (gross) domestic production expected 2Q 2005

Bibiyana field development ~ 200 MMCFD (gross) domestic production expected 4Q 2006

MYANMARMYANMAR100 km100 km

DhakaDhaka

INDIAINDIA

Unocal acreageUnocal acreage

14

12

B A N G L A D E S HB A N G L A D E S H

13

Moulavi BazarGas Field

BibiyanaGas Field

JalalabadGas Field

INDIAINDIA

0

200

400

600

800

1000

1200

1400

1600

1800

1997 1999 2001 2003 2005 2007 2009

Unocal

Sangu

Petrobangla fields

Demand projection

MMCFDMMCFD

Bangladesh Gas MarketBangladesh Gas MarketSupply / DemandSupply / Demand

Unocal

Moulavi Bazarstart-up

planned

Bangladesh Bangladesh Moulavi Bazar Development Moulavi Bazar Development

In October 2003, Unocal signed an agreement with In October 2003, Unocal signed an agreement with Petrobangla to develop the Moulavi Bazar gas field, Petrobangla to develop the Moulavi Bazar gas field, located on Block 14 located on Block 14

Unocal plans to drill two development wells, build a Unocal plans to drill two development wells, build a gas processing plant and a 15-mile-long pipeline to gas processing plant and a 15-mile-long pipeline to connect field with existing natural gas pipeline grid connect field with existing natural gas pipeline grid

Unocal expects to produce 70 to 100 Unocal expects to produce 70 to 100 MMCFDMMCFD from from field for domestic markets, beginning 1H 2005 field for domestic markets, beginning 1H 2005

Estimated gross resource potential is > 440 Estimated gross resource potential is > 440 BCFBCF

Total development costs estimated at $45 Total development costs estimated at $45 MMMM

Bangladesh Bangladesh Bibiyana Development Bibiyana Development

Gas Purchase & Sales Agreement (GPSA) signed Gas Purchase & Sales Agreement (GPSA) signed November 8, 2004November 8, 2004

Production of 200 MMCFD and 1 MBCD expected 4Q 2006Production of 200 MMCFD and 1 MBCD expected 4Q 2006

Minimum production sales volumes under GPSA increase Minimum production sales volumes under GPSA increase to 400 MMCFD (gross) at the end of 2008to 400 MMCFD (gross) at the end of 2008

Unocal expects to eventually drill up to 15 development Unocal expects to eventually drill up to 15 development wells, install a gas plant, and construct a 25-mile pipelinewells, install a gas plant, and construct a 25-mile pipeline

Total development costs estimated at $230 MM through 2008Total development costs estimated at $230 MM through 2008

Discovery well had net gas pay of 1,063 ft. and a drill stem Discovery well had net gas pay of 1,063 ft. and a drill stem test of 173 MMCFDtest of 173 MMCFD

Resource potential ~ 3 TCF Resource potential ~ 3 TCF


208 MBOE/D208 MBOE/D


583 MMBOE583 MMBOE


208 MBOE/D208 MBOE/D


583 MMBOE583 MMBOE

Unocal Unocal North American OperationsNorth American Operations

Unocal Unocal North American OperationsNorth American Operations

Canada

Onshore U.S. GOM Shelf

GOM Deepwater

Alaska

Gulf of Mexico Gulf of Mexico 5555 60 60 5.655.65

Pure ResourcesPure Resources 54 54 265 265 10.3010.30

AlaskaAlaska 29 80 29 80 11.3511.35

Canada Canada 30 30 130 130 9.20 9.20

Total N. AmericaTotal N. America168 535168 535 8.758.75

North American Operations *

ProductionProduction Capex Capex Cash Expense Cash Expense

9 Mos. 20049 Mos. 2004 2004E 9 Mos. 2004 2004E 9 Mos. 2004 (MBOE/D)(MBOE/D) ($MM)($MM) ($ per BOE)($ per BOE)

* Excludes deepwater

Deepwater Gulf of MexicoDiscoveries and Drilling Inventory

MirageMirage

CascadeCascadeChinookChinook

TahitiTahiti

K2K2

TridentTrident

Great WhiteGreat White

St. MaloSt. Malo La JollaLa Jolla

Mad DogMad Dog

TobagoTobago

PumaPuma

Unocal discoveriesUnocal discoveries

Near-term wellsNear-term wells

Industry discoveriesIndustry discoveries

Green Cyn. MioceneGreen Cyn. Miocene

Lower TertiaryLower Tertiary

Perdido Fold BeltPerdido Fold Belt

Currently drillingCurrently drilling

Exploration Focus AreasExploration Focus Areas

ChilkootUCL

ChilkootUCL

SequoiaSequoia

HadrianHadrian

KnottyheadKnottyhead

SardiniaSardinia JackJack

0 5025

Miles

JackCVX

La JollaUCL

Das BumpBP

ChinookBHP

CascadeBHP

Keathley CanyonWalker Ridge

Sicily

Deepwater Gulf of MexicoLower Tertiary Trend Prospectivity

Unocal discoveriesUnocal discoveries

Near-term wellsNear-term wells

Industry discoveriesIndustry discoveries

Unocal prospectsUnocal prospects

HadrianXOM

CoronadoGorgona

St. Malo Isle RoyaleBP

Ponza Deep

Cyprus

Significant inventory of additional prospects identified by industry not shown

Sardinia

Cats Eye

West Sardinia

Top Leaseholders in the Lower Tertiary *

Source: Lexco, which does not capture cross-assignments

* Includes: Alaminos Canyon, Keathley Canyon, Walker Ridge, Sigsbee Escarpment, and Amery Terrace

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Average WI ()

CVX XOM BP Shell KMG DVN UCL AHC COP

Net Acres ( )

St. Malo Discovery

679 680677

632

722 723 724720

676

633 634 635 636

678

Unocal blocksUnocal blocks

Lower Tertiary play (>29,000 ft.)Lower Tertiary play (>29,000 ft.)

Discovery well (10/03) drilled Discovery well (10/03) drilled in 6,900 ft. water depth; >450 ft. in 6,900 ft. water depth; >450 ft. net pay in 1,400 ft. oil columnnet pay in 1,400 ft. oil column

Successful appraisal well (6/04) Successful appraisal well (6/04) drilled about one mile east of drilled about one mile east of discovery well; >400 ft. net oil discovery well; >400 ft. net oil pay in deeper intervalpay in deeper interval

Test data evaluation & study of Test data evaluation & study of potential development options potential development options now under waynow under way

Unocal WI 28.75% (25.2% net)Unocal WI 28.75% (25.2% net)

Lower Tertiary play (>29,000 ft.)Lower Tertiary play (>29,000 ft.)

Discovery well (10/03) drilled Discovery well (10/03) drilled in 6,900 ft. water depth; >450 ft. in 6,900 ft. water depth; >450 ft. net pay in 1,400 ft. oil columnnet pay in 1,400 ft. oil column

Successful appraisal well (6/04) Successful appraisal well (6/04) drilled about one mile east of drilled about one mile east of discovery well; >400 ft. net oil discovery well; >400 ft. net oil pay in deeper intervalpay in deeper interval

Test data evaluation & study of Test data evaluation & study of potential development options potential development options now under waynow under way


588 589 590 591 592

721

766 767 768764 765

St. Malo #1St. Malo #1St. Malo #1St. Malo #1

La Jolla / La Jolla / Das BumpDas Bump

La Jolla / La Jolla / Das BumpDas Bump

0 5025

Miles

0 5025

Miles

St. Malo #2St. Malo #2St. Malo #2St. Malo #2

BP drillingBP drillingBP drillingBP drilling

Puma Discovery

782 783 784

872

825

781

694693

736

826

870 871

827 828824

780

737

868 869

738 739 740

Discovery well with Discovery well with 2 sidetracks drilled 2 sidetracks drilled 12/03 in ~4,130 ft. 12/03 in ~4,130 ft. water depth water depth (BP-operated)(BP-operated)

500 ft. (net) Lower/ 500 ft. (net) Lower/ Middle Miocene pay Middle Miocene pay at 19,034 ft.at 19,034 ft.

8-10 miles from 8-10 miles from Mad DogMad Dog

Further appraisal Further appraisal likely in 2H 2004likely in 2H 2004

Unocal WI 15% Unocal WI 15% (13.1% net)(13.1% net)

Discovery well with Discovery well with 2 sidetracks drilled 2 sidetracks drilled 12/03 in ~4,130 ft. 12/03 in ~4,130 ft. water depth water depth (BP-operated)(BP-operated)

500 ft. (net) Lower/ 500 ft. (net) Lower/ Middle Miocene pay Middle Miocene pay at 19,034 ft.at 19,034 ft.

8-10 miles from 8-10 miles from Mad DogMad Dog

Further appraisal Further appraisal likely in 2H 2004likely in 2H 2004

Unocal WI 15% Unocal WI 15% (13.1% net)(13.1% net)

735

823

779

734

822

778

733

821

777

Puma #1Puma #1Puma #1Puma #1

0 5025

Miles

0 5025

Miles

Mad Dog partnership acreageMad Dog partnership acreage

Original Mad Dog unit (GC 826)Original Mad Dog unit (GC 826)

Puma partnership acreagePuma partnership acreage

Mad Dog Mad Dog discoverydiscoveryMad Dog Mad Dog discoverydiscovery

867866865

Mad Dog SW RidgeMad Dog SW RidgeAppraisalAppraisal

(1Q 05)(1Q 05)

Mad Dog SW RidgeMad Dog SW RidgeAppraisalAppraisal

(1Q 05)(1Q 05)

859 860 861

906

949

902

858

771770

813

Great Great WhiteWhiteGreat Great WhiteWhite

Trident partnershipTrident partnership

Other Unocal blocksOther Unocal blocks

Shell, BP, CVX unitShell, BP, CVX unit

903

947 948

904

Trident #2Trident #2Trident #2Trident #2

905901900

857

814

Trident / Tobago Discoveries

Trident #3Trident #3Trident #3Trident #3USA

MEXICO

Discovery well (Trident #1, Discovery well (Trident #1, 7/01); encountered 300+ ft. 7/01); encountered 300+ ft. of high-quality oil (40º API) of high-quality oil (40º API) net paynet pay

Successful appraisal well Successful appraisal well (Trident #2, 12/01) confirmed (Trident #2, 12/01) confirmed lateral continuity of lateral continuity of reservoirreservoir

Successful second appraisal Successful second appraisal well (Trident #3, 11/02)well (Trident #3, 11/02)

100-200 MMBOE gross 100-200 MMBOE gross resource potentialresource potential


Discovery well (Trident #1, Discovery well (Trident #1, 7/01); encountered 300+ ft. 7/01); encountered 300+ ft. of high-quality oil (40º API) of high-quality oil (40º API) net paynet pay

Successful appraisal well Successful appraisal well (Trident #2, 12/01) confirmed (Trident #2, 12/01) confirmed lateral continuity of lateral continuity of reservoirreservoir

Successful second appraisal Successful second appraisal well (Trident #3, 11/02)well (Trident #3, 11/02)

100-200 MMBOE gross 100-200 MMBOE gross resource potentialresource potential


815 816 817 818

773772 775774

729728 731730

Tobago #1Tobago #1Tobago #1Tobago #1

Trident #1Trident #1Trident #1Trident #1

Deepwater GOM − K2 Development

GC 608GC 608

GC 562GC 562

3-D perspective of seafloor between3-D perspective of seafloor betweenK2 and Marco PoloK2 and Marco Polo

0 5025

Miles

0 5025

Miles

Possible pipeline routePossible pipeline route(dual flowlines)(dual flowlines)

PossiblePossibleK2 well K2 well locationslocations Discovery well (10/99) in ~ Discovery well (10/99) in ~

4,000 ft. water depth4,000 ft. water depth

55-125 MMBOE gross 55-125 MMBOE gross unrisked resource potentialunrisked resource potential

Project sanction 1Q 04 Project sanction 1Q 04 with first oil 2Q 05with first oil 2Q 05

Subsea tieback to Subsea tieback to Anadarko’s Marco Polo Anadarko’s Marco Polo TLP (installed 1/04)TLP (installed 1/04)

Peak production expected Peak production expected at 50-65 Mat 50-65 MBOE/DBOE/D gross gross


Discovery well (10/99) in ~ Discovery well (10/99) in ~ 4,000 ft. water depth4,000 ft. water depth

55-125 MMBOE gross 55-125 MMBOE gross unrisked resource potentialunrisked resource potential

Project sanction 1Q 04 Project sanction 1Q 04 with first oil 2Q 05with first oil 2Q 05

Subsea tieback to Subsea tieback to Anadarko’s Marco Polo Anadarko’s Marco Polo TLP (installed 1/04)TLP (installed 1/04)

Peak production expected Peak production expected at 50-65 Mat 50-65 MBOE/DBOE/D gross gross


NN

Marco PoloMarco Polo

Unocal blocksUnocal blocks

Deepwater GOM − Mad Dog Development

0 5025

Miles

0 5025

Miles

Spar development (BP operated), Spar development (BP operated), 80,000 BOPD / 50 MMCFD80,000 BOPD / 50 MMCFD

200 - 450 MMBOE risked full field 200 - 450 MMBOE risked full field estimated recovery potentialestimated recovery potential

On track to deliver first oil early 2005On track to deliver first oil early 2005


Spar development (BP operated), Spar development (BP operated), 80,000 BOPD / 50 MMCFD80,000 BOPD / 50 MMCFD

200 - 450 MMBOE risked full field 200 - 450 MMBOE risked full field estimated recovery potentialestimated recovery potential

On track to deliver first oil early 2005On track to deliver first oil early 2005


Project ScheduleProject Schedule

9898 9999 0000 0101 0202 0303 0404 0505

DiscoveryDiscovery AppraisalAppraisal SanctionSanction ConstructionConstruction First OilFirst Oil

Setting the Mad Dog topsidesSetting the Mad Dog topsidesJuly, 2004July, 2004

TT XX

LL AA MMSS AA LL

HH oo uu ss tt oo nn

Pure Resources OverviewPure Resources Overview

Current Pure operationsCurrent Pure operations

High quality, long-lived reserve base

Geographically focused operations

Significant project inventory

Good full-cycle economics

Permian Basin33 MBOED

San Juan Basin16 MBOED

East Texas6 MBOED

Pure Resources: Opportunity RichPure Resources: Opportunity Rich

Large inventory of quality development / exploitation Large inventory of quality development / exploitation projects @ $20 oilprojects @ $20 oil

55,000 55,000 BOE/DBOE/D production with expected growth in 2005 production with expected growth in 2005

257 257 MMBOEMMBOE of proved reserves of proved reserves

Large player in Permian Basin, active in deal flowLarge player in Permian Basin, active in deal flow

R/P of 12 yearsR/P of 12 years

What To Watch For Next 9 MonthsWhat To Watch For Next 9 Months

First production from new projectsFirst production from new projects

– AIOC Phase 1, Mad Dog, K-2, Bangladesh, Thai oil AIOC Phase 1, Mad Dog, K-2, Bangladesh, Thai oil

Deepwater GOM exploration and appraisalDeepwater GOM exploration and appraisal

– Sequoia, Mad Dog Deep, La Jolla / Das BumpSequoia, Mad Dog Deep, La Jolla / Das Bump

– Lower Tertiary tests in Keathley Canyon / Walker RidgeLower Tertiary tests in Keathley Canyon / Walker Ridge

– Green Canyon Miocene tests – Chilkoot & Knottyhead Green Canyon Miocene tests – Chilkoot & Knottyhead

– St. Malo and Puma appraisalsSt. Malo and Puma appraisals

IndonesiaIndonesia

– Development plans for Gendalo early gasDevelopment plans for Gendalo early gas

– Exploration in Tarakan Basin and outboard PSCsExploration in Tarakan Basin and outboard PSCs

Bangladesh –Bangladesh – New Gas Sales Agreement signed New Gas Sales Agreement signed

Azerbaijan –Azerbaijan – BTC pipeline commissioned BTC pipeline commissioned

Unocal’s Vision and Values

James H. Painter Sr. VP, Exploration and Technology Unocal Corporation Banc of America Securities

Documents

Transcript of James H. Painter Sr. VP, Exploration and Technology Unocal Corporation Banc of America Securities