Presentation to
RDC
by:
Charles A. Pierce III
Vice President
Unocal Alaska
Unocal Alaska
COOK INLET
NATURAL GAS SUPPLY ISSUES
 Cook Inlet Producing Assets are
declining
 There has been very little exploration for
gas in the Cook Inlet
 Exploration for new sources is required to
meet mid - long term requirements
Unocal Alaska
2001 Cook Inlet Gas
Producers
Users
Chevron/ML&P
12%
Marathon
34%
Phillips/Marathon
LNG
39%
Phillips
35%
Unocal
19%
Unocal Alaska
Gas Utilities
14%
Power Generation
20%
Agrium Fertilizer
Plant
26%
Tesoro Refinery
1%
Possible 3TCF Uncontracted demand through 2022
300
MMcf/D
250
200
150
100
50
SUPPLIED
Unocal Alaska
UNMET DEMAND
20
22
20
20
20
18
20
16
20
14
20
12
20
10
20
08
20
06
20
04
20
02
0
GAS SUPPLY FUNDAMENTALS
 Establish Acreage Position
 Unocal has > 100,000 net acres on the lower Kenai Peninsula
 Develop Adequate Reserve Base
 Drilling programs
 Joint program with Marathon
 Unocal operated Program to begin in December
 Secure Transportation System
 Pipeline project with Marathon, Enstar, and HEA
 Supply Market Needs
 Contract to Agrium and Enstar
Unocal Alaska
Kenai - Kachemak
Pipeline Project
Area Map
Ninilchik Unit
Phase 1
Phase 2
Anchor Point
Area
Possible Distribution
Unocal Alaska
PROJECT SUMMARY
 Drilling Program
 Current - 3 wells in Ninilchik Unit
 Planned 2002 - 5 to 9 depending on success
 Pipeline
 Design - 12 to 16 inch diameter
 Cost - ~ $40 - $50 million
 Total Project Success Budget
 > $100 million over 3 years
 Timing
 Target start-up Nov.1, 2003
 Will require expedited approval process
Unocal Alaska