Unocal Corporation (NYSE: UCL) said that its subsidiary, Philippine Geothermal, Inc. (PGI), has received payment under a compromise agreement that has been reached to settle an eight-year dispute over operation of the Tiwi and Mak-Ban geothermal steam fields in the Philippines.

The Philippines’ Department of Energy and the courts approved the agreement between PGI, the state-owned National Power Corporation (NPC) and its holding company, the Power Sector Assets and Liabilities Management Corporation (PSALM). PSALM is the successor-in-interest to the geothermal facilities.

The settlement provides for PGI to continue steam field production until 2021.

The terms of the settlement provide PGI after-tax payments totaling US$76 million (PGI received $50 million of the total payment today, with the remaining $26 million expected July 30.). Unocal will record a $46 million after-tax special item gain in the second quarter 2004. The payments to PGI include a portion of PGI’s service fees that were set aside under an interim agreement previously reached between the parties while they were negotiating a settlement.

Unocal is a leading independent natural gas and oil exploration company. It is also one of the world’s largest producers of geothermal energy, with operations in the Philippines and Indonesia.