UNOCAL <UCL> PLANS INCREASE IN CAPITAL SPENDING Unocal Corp said it intends to increase its spending for capital projects to 929 mln dlrs in 1987, eight pct more than the 862 mln spent in 1986. The company said in its annual report that it would increase spending for exploration and development of petroleum resources by about three pct to 614 mln dlrs from 1986's 595 mln dlrs, assuming oil prices hold around current levels. The planned spending for exploration and production in 1987 remains well below the 1.1 billion dlrs spent in 1985, Unocal said. The company's proved developed and undeveloped reserves of crude oil rose slightly in 1986, Unocal said. Net crude oil and condensate reserves were 752 mln bbls as of Dec 31, 1986, compared to 751 mln bbls at the end of 1985, Unocal said. The company said its net crude oil and condensate production averaged 248,200 barrels per day in 1986 compared to 251,300 bpd in 1985. Unocal said its worldwide natural gas reserves were 6.07 billion cubic feet in 1986 compared to 1985's 6.19 billion. Net natural gas output averaged 976 mln cubic feet per day in 1986, down 10 pct from 1985's 1,084 mln, the company said. Unocal said its average sales prices for crude oil was 12.67 dlrs a barrel worldwide in 1986 compared to 23.81 dlrs in 1985, and its average sales price for natural gas was 2.03 dlrs per thousand cubic feet in 1986 against 2.24 dlrs in 1985. Average production costs for crude oil and natural gas declined nearly 30 pct to 3.41 dlrs per bbl of oil equivalent in 1986 from 4.81 dlrs in 1985, Unocal said. In the annual report, the company called for imposition of an oil import fee by the U.S. government to set a floor price of about 25 dlrs a barrel for crude oil. "Simply stabilizing prices at about 18 dlrs per barrel will not materialy slow the drop in U.S. production or the rise in imports," Chairman Fred Hartley said in the annual report. "Without decisive action in Washington, this nation will once again become a hostage to OPEC's plans and policies," Hartley said.