NEWS BULLETIN

February 09, 1999 --- Vol. 5, No. 7February 1999

Unocal ends fertilizer asset sale negotiations until product prices improve, continues talks to sell Cook Inlet oil and gas assets

Unocal Alaska Resources employees were notified this morning that the company has ended negotiations to sell its agricultural products assets, including the Nikiski plant, until product prices and financial markets improve.

Unocal Alaska spokeswoman Roxanne Sinz told PNA that Unocal has been in negotiations to sell its agricultural products, fertilizer and oil and gas assets, but did not come to an agreement on the terms of the sale for the fertilizer assets.

"At this point," she said, "we are ending that sale process until product prices and financial markets improve."

The company's fertilizer units include the Nikiski plant, an ammonia production facility in Finley, Wash., and product upgrading facilities in Kennewick, Wash., and West Sacramento, Calif.

Oil and gas negotiations continue

"We're continuing to have negotiations with a potential buyer on the Cook Inlet oil and gas assets," Sinz said. She said she could not provide any additional information on those negotiations.

"What we do know is that we're going to have to improve our bottom line," Sinz said. Unocal management will be working with employees to come up with an action plan, and will be meeting with employees, including those in Alaska, later this week.

"Overall," she said, "we're going to have to cut costs in all areas."


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