Unocal Withdrawing From Pipeline Project

Unocal Corp. said it is withdrawing from a pipeline project meant to bring natural gas to Turkey from Turkmenistan. The 15th-largest U.S. oil company, faced with a prolonged period of low oil prices, plans to cut capital spending next year by as much as $650 million. To do so, it’s deferring spending on lower-return projects and suspending or withdrawing from projects with high political risk and long payback times. Unocal said the gas pipeline project doesn’t mesh with its new development plans. Unocal’s partners were Istanbul-based Koc Holding and Houston-based Conoco Inc. Shares in El Segundo-based Unocal fell 6 cents to close at $34.19 on the NYSE.