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Unocal's Outlook "Negative" Says S

        Unocal's Outlook Revised To Negative By S&P

Date:   98-04-30 16:30:44 EDT

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire  4/30/98--Standard
& Poor's today affirmed its ratings of Unocal Corp. and subsidiaries (see
table below).  The outlook is revised to negative from stable.

    Ratings reflect its position as the largest independent exploration
and production company, offset by a somewhat weak financial profile and
high degree of political risk.  At year-end 1997, Unocal's total reserves
equaled 1.8 billion boe, significantly larger than most major
independents.  However, about two-thirds of those reserves are located in
countries of high political risk, in particular Thailand and Indonesia,
which are currently experiencing economic turmoil.  These reserves are
also weighted toward gas which is directed at local markets.  Moreover,
about 70% of the firm's future capital expenditures in exploration and
production are dedicated to projects in the Far East, increasing the
company's exposure to political risk.  These concerns over rising
political risk are partially mitigated by commodities priced in U.S.
dollars or reset to dollar equivalents regularly and the use of
non-recourse financing. 

Despite weak current oil prices, the company's good cost position and high
levels of gas production should facilitate fair cash flow generation. 
These cash flows are to be used in part to stem the production decline in
the company's Sprit 76 U.S.  operations and to fuel the growth of its
international operations.  Still, barring a rebound in oil prices,
expected cash flow shortfalls would result in an increase in debt leverage
from levels already high for the current rating. 


    Weak oil prices and the Asian economic crisis have begun to  impact
the company's cash flows in the first quarter of 1998.  Should these
situations worsen, ratings could be lowered, Standard & Poor's  said.  --

*T RATINSG AFFIRMED Unocal Corp.(a)   Corporate credit ratings
      BBB+/A-2 Union Oil Co. of California

  Corporate credit ratings                        BBB+/A-2

  Senior debt                                     BBB+   Commercial paper

  Senior/subordinated shelf registration (Prelim) BBB+/BBB Unocal Capital

  Corporate credit rating                         BBB+   Preferred stock
by Unocal Corp.)          BBB *T

(a)Unocal Corp. guarantees some of the senior debt and commercial paper
of Union Oil Co. of California.


Dmitri P Nayduch, New York (1) 212-208-8396

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