Unocal Corporation said that its Unocal North Sumatra Geothermal subsidiary (UNSG) has reached agreement to sell its rights and interests in the Sarulla geothermal project on the Island of Sumatra, Indonesia, to PLN, the Indonesian state electricity company.El Segundo, California – July 15, 2003 [SolarAccess.com] Under the heads of agreement, PLN would acquire Unocal North Sumatra’s interest in the Joint Operation Contract (JOC) with Pertamina and Energy Sales Contract (ESC) with PLN. The anticipated purchase price is US$60 million. The transaction is expected to close in September 2003. Unocal said they expect to record a gain on the transaction in the third quarter 2003. The JOC and ESC for the Sarulla project in North Sumatra were signed in 1993. Since then, the company has conducted extensive exploration activities, including drilling 13 wells in three separate prospects. In 1995, the first commercial geothermal resources were discovered in Silangkitang. In 1998, the project was postponed through a presidential decree due to the economic crisis in Indonesia. The presidential decree was later revoked. Unocal had hoped to help meet the power needs of North Sumatra and has been negotiating with PLN for a long-term contract solution. After several months of negotiations, the parties determined that Unocal’s legal, technical, and commercial requirements to invest further in the project could not be satisfied. PLN’s proposal to purchase the contracts from UNSG became a preferred option for settling the contract issues.