SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549



                                    FORM 8-K



                             Current Report Pursuant
                          to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



    Date of report (Date of earliest event reported)    June 17, 1998
                                                        -------------



                               UNOCAL CORPORATION
- - --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



                                    Delaware
- - --------------------------------------------------------------------------------
                 (State or Other Jurisdiction of Incorporation)



    1-8483                                   95-3825062
- - --------------------------------------------------------------------------------
(Commission File Number)                (I.R.S. Employer Identification No.)



2141 Rosecrans Avenue, Suite 4000, El Segundo, California         90245
- - --------------------------------------------------------------------------------

(Address of Principal Executive Offices)                       (Zip Code)



                                 (310) 726-7600
- - --------------------------------------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)



Item 5.           Other Events.

On June 17, 1998 the following news release was issued:


                                Unocal Reports $3.4 Million Shortfall
                                For Indonesian March Steam Deliveries
                                -------------------------------------


         El Segundo,  Calif., June 17, 1998 - Unocal Corporation said today that
invoices totaling $4.3 million for steam production in March 1998 from the Salak
geothermal  field --  operated  by its Unocal  Geothermal  of  Indonesia,  Ltd.,
subsidiary -- had been paid in the amount of $0.9 million,  creating a shortfall
of $3.4 million.

         In  addition  to the  March  shortfall,  the  company  currently  has a
receivable  balance of $43.9 million,  most of which is for steam sales from the
Salak field.  Of this total,  $12 million is due by the end of August 1998,  and
the balance payable over the next several years.

         Unocal  said  that  it  is  engaged  in  discussions   with  Indonesian
government  entities to explore potential  opportunities to resolve these issues
to the benefit of both parties.

         Steam production and electricity generation at the Salak field, located
on the island of Java, have not been affected.

         Unocal Geothermal provides steam to all six geothermal-powered electric
generating  plants at the Salak field.  The  company's  net  aggregate  property
investment  in  its  Indonesian  geothermal  operations  is  approximately  $290
million, including both the Salak and Sarulla contract areas. Sarulla is located
in Northern Sumatra.

         Unocal's  Indonesian  crude oil and natural gas production  continue to
operate normally,  with production sold in export markets.  Unocal operates nine
fields offshore East Kalimantan.

         Unocal  is  one  of  the  world's  largest   independent  oil  and  gas
exploration and production  companies,  with major resource  development,  power
plant and pipeline projects in Central and Southeast Asia, Latin America and the
U.S. Gulf of Mexico region.

        News  releases and other company  information  are available at Unocal's
web site, http://www.unocal.com.



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.




                                          UNOCAL CORPORATION
                                             (Registrant)




Date:  June 17, 1998             By:        /s/ JOE D. CECIL
- - --------------------             ---------------------------
                                           Joe D. Cecil
                                           Vice President and Comptroller