Unocal in Transandean Oil Pipeline

Unocal Argentina has purchased a 30-% interest in the 265-mile Transandean Oil Pipeline, which transports crude oil from Argentina to Chile. Unocal purchased the interest from Inter-Rio Holdings, the primary lender responsible for financing construction of the pipeline. The Transandean Oil Pipeline, which has a capacity of 115,000 bopd, ships an average of 97,000 bopd from the Neuquen Basin of Argentina to storage facilities, a refinery and loading terminals located on the coast of Chile near the city of Concepcion. This acquisition is seen as a low-risk, high-return opportunity that builds on Unocal's long-term strategy of investing in projects that connect growing markets to known energy resources. The pipeline, which was completed in February 1994, is operated by two separate companies: Oleoducto Trasandino Argentina, S.A. and Oleoducto Trasandino Chile, S.A. Both operating companies are held by A&C Pipeline Holding Company. The remaining sharehold interests are owned by YPF, (57.75%) and Empresa Nacional del Petroleo (ENAP) (12.25%) of Chile.