Unocal sells Sarulla project to PLN

Unocal sells Sarulla project to PLN

EL SEGUNDO, California: Unocal Corp. agreed to sell its interest
in the Sarulla geothermal project to PLN, the Indonesian state
electricity company, for US$60 million, resulting in a third-
quarter gain.

The sale includes the operations and sales contracts the
Unocal North Sumatra Geothermal Ltd. unit signed with Pertamina
and PLN in 1993.

The unit's exploration activities discovered commercial
geothermal resources in Silangkitang in 1995, but a presidential
decree postponed the project in 1998, due to the economic crisis
in Indonesia. The presidential decree was later revoked, the
company said.

In a press release on Monday, Unocal said its legal,
technical, and commercial requirements to invest further in the
project could not be satisfied after several months of
negotiations.

The oil and gas producer expects to close the sale in
September. -- Dow Jones