• Unocal Statement: Suspension of activities related to proposed natural gas pipeline across Afghanistan, August 21, 1998

• Unocal statement on withdrawal from the proposed Central Asia Gas (CentGas) pipeline project, December 10, 1998

• Unocal reiterates position on withdrawal from trans-Afghanistan pipeline project, February 16, 1999

• Unocal reiterates Afghanistan position at Annual Meeting of Stockholders, May 20, 2002

Unocal Statement: Suspension of activities related to proposed natural gas pipeline across Afghanistan

August 21, 1998

Source: Unocal

This decision to suspend activities is consistent with Unocal's long-held position concerning its involvement in the project. For the past several months, Unocal has been reviewing this project with CentGas participants. We have consistently informed the other participants that unless and until the United Nations and the United States government recognize a legitimate government in Afghanistan, Unocal would not invest capital in the project. Contrary to some published reports, Unocal has not - and will not - become a party to a commercial agreement with any individual Afghanistan faction.

Unocal was instrumental in proposing the Central Asia gas pipeline project in 1995 and in forming the seven-member CentGas consortium in October 1997. The consortium was formed to evaluate and, if appropriate, to participate in the future construction of a gas pipeline from Turkmenistan through Afghanistan to natural gas markets in Pakistan and, potentially, India.

Unocal will only participate in construction of the proposed Central Asia Gas Pipeline when and if Afghanistan achieves the peace and stability necessary to obtain financing from international lending agencies for this project and an established government is recognized by the United Nations and the United States. For this reason, we strongly support the United Nations conflict resolution process underway in this and other regions.

We believe that the CentGas pipeline would benefit the entire region by providing vitally needed energy infrastructure, employment and training, as well as hard currency revenues to the several countries involved. The proposed pipeline is an example of a large-scale project that may, after the appropriate conditions are met, help Afghanistan move from its present devastation toward economic reconstruction.

Since the pipeline project was first proposed, there have been a number of complex issues that Unocal has taken very seriously. Unocal recognizes the legitimate concerns regarding the treatment of women in Afghanistan. Consistent with our core values and business principles, Unocal is currently providing humanitarian support and skills training to Afghanistan through CARE and the University of Nebraska at Omaha. Neither program is designed to provide pipeline construction skills training. These programs meet or exceed UN guidelines for doing fieldwork in Afghanistan. They include basic job skills training and education for both men and women, and elementary education for boys and girls. Unocal has also contributed relief assistance for victims of the recent earthquakes through the Red Cross and the United Nations.

Unocal reiterates position on withdrawal from trans-Afghanistan pipeline project

February 16, 1999

Source: Unocal

Unocal Corporation today reiterated that it no longer has any role in developing or funding the proposed CentGas pipeline project across Afghanistan.

The company stated that it is not considering rejoining the CentGas consortium, nor has the company had any discussions with persons or entities anywhere about re-entering the project since Unocal formally withdrew from CentGas in December 1998 (See Unocal statement, Dec. 10, 1998).

Unocal issued this statement after an erroneous press report from Islamabad, Pakistan, quoted Pakistani officials who indicated that Unocal was showing an interest in rejoining the consortium.

Unocal reiterates Afghanistan position at Annual Meeting of Stockholders

Updated May 20, 2002

Source: Unocal

Unocal Chairman Charles R. Williamson told Unocal stockholders today that Unocal has no plans or interest in becoming involved in any projects in Afghanistan, including natural gas or crude oil pipelines. He made the statement in response to recent erroneous news reports about Unocal and the pipeline project in Afghanistan.

Background
 

Beginning in late 1997, Unocal was a member of a multinational consortium that was evaluating construction of a Central Asia Gas (CentGas) pipeline between Turkmenistan and Pakistan. Part of this pipeline would have crossed western Afghanistan. However, Unocal suspended its participation in the CentGas consortium in August 1998 and formally withdrew from that consortium in December 1998. Our company has had no further role in developing or funding that project or any other project that might involve the Taliban. The pipeline was never constructed.

During this time, Afghanistan was in the midst of a civil war. We met with many factions, including the Taliban, to educate them about the benefits such a pipeline could bring to this desperately poor and war-torn country, as well as to the Central Asian region. At no time did we make any deal with the Taliban, and, in fact, consistently emphasized that the project could not and would not proceed until there was an internationally recognized government in place in Afghanistan that fairly represented all its people. Our hope was that the project could help bring peace, stability and economic development to the Afghans, as well as develop important energy resources for the region.