Unocal Corp. said it expects worldwide average net oil and gasproduction to rise 44% to nearly 700,000 Boe/d by 2004. The updatedoutlook reflects a 7.6% annual growth in net worldwide productionfrom an estimated 485,000 Boe/d in 1999. Net Lower 48 U.S.production is expected to rise 44% to an estimated 237,000 Boe/d in2004.

The company earlier forecast 2004 production of 918,000 Boe/dwith increases heavily weighted to 2002 and 2004. “We have revisedour production forecast as a result of a change in our philosophy,especially with respect to the later year projections, as well asto reflect factors that may delay certain projects,” said Roger C.Beach, Unocal CEO.

Beach said Unocal has taken a more conservative approach to itsproduction forecasting and included only anticipated productionassociated with established discoveries. Expected production fromdiscoveries in the deepwater or other frontier areas that requireadditional drilling, approvals or sales contracts, has beenexcluded from the latest forecast.

The operating plan is designed “to increase our worldwideproduction to about 540,000 Boe/d in 2001, 11% above the estimated1999 average daily production level. Over the longer term, we stillforesee strong production growth, with upside potential above thisforecast contingent upon additional exploration drilling successesor more favorable market conditions.”

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