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Unocal sees '99 oil, gas output up
- Subject: Unocal sees '99 oil, gas output up
- From: Rangoonp@xxxxxxx
- Date: Thu, 19 Nov 1998 02:17:00
Subject: Unocal sees '99 oil, gas output up 3 pct vs '98
Unocal sees '99 oil, gas output up 3 pct vs '98
LOS ANGELES, Nov 11 (Reuters) - Unocal Corp. (NYSE:UCL - news) on
Wednesday forecast a
3 percent rise in oil and natural gas production in 1999 due to
increased output from projects in
Bangladesh and Myanmar.
The California-based company expects net worldwide oil and gas
production to increase to about 500,000 barrels of oil
equivalent per day (BOED), compared with an estimated 485,000 BOED in
The 1999 production forecast, however, was down from earlier estimates
because of Unocal's plan to link capital spending
to projected cash flow as a guard against increasing debt.
The forecast could change, depending on market conditions in Asia, the
company said in a statement.
In the same announcement, the oil company said capital spending will be
cut 30 percent to 40 percent due to weak
commodity prices. World oil prices have fallen by about 40 percent to
about $12 to $14 a barrel since last November, due to
global oversupply and lower demand, most notably as a result of Asia's
Unocal, headquartered in El Segundo, Calif., said worldwide production
is expected to grow at a compound annual growth
rate of 11.5 percent over the next five years -- the same rate announced
by the company at its July 1998 analysts'