FOR FURTHER INFORMATION:

                                   Stan Lampe  (Ashland)
                                   (606) 329-4061  (U.S.)

                                   Kai Nielsen  (Statoil)
                                   011 47 52 4972  (Norway)

                                   Glenn Schickler  (Eastern)
                                   (703) 317-2336 (U.S.)

                                   FOR IMMEDIATE RELEASE
                                   May 21, 1997

The Eastern Group to purchase
Blazer Energy domestic E & P holdings

     Ashland,  Ky. -- Ashland  Inc.  (NYSE:ASH)  and the  Norwegian  energy
company, Statoil,  announced today the signing of a definitive purchase and
sale agreement for the outstanding stock of Blazer Energy Corp. (Blazer), a
wholly  owned   subsidiary  of  Ashland  Inc.  Blazer  is  engaged  in  the
exploration for and the development,  production, acquisition and marketing
of  natural  gas and oil.  Statoil's  acquisition  of  Blazer  will be made
through its U.S.  energy  management  subsidiary,  The Eastern Group,  Inc.
(Eastern).
     The cash  transaction,  which includes  substantially all of Ashland's
domestic oil and gas properties,  but excludes international operations, is
valued at $566 million and is subject to approval by Statoil's  Supervisory
Board and federal  regulatory  authorities.  Closing of the  transaction is
anticipated by July 1, 1997.
     Harald  Norvik,  president and chief  executive of Statoil,  said "the
acquisition of Blazer reflects our strong  commitment to the North American
energy market.  Blazer's  Appalachian  Basin properties will be retained by
Eastern,  while its Gulf of Mexico  properties  will be operated by Statoil
Exploration  (U.S.) Inc. (SEUS),  another of Statoil's three U.S. operating
companies. This acquisition will substantially enhance Eastern's ability to
serve its end user customer base with strategically located reserves, while
the Gulf  properties  will  provide SEUS a valuable  stepping  stone to its
ambitions in deeper waters off the Gulf Coast."

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     David  A.  Dresner,  president  and  chief  executive  of  Alexandria,
Va.-based  Eastern,  said,  "the  combination  of Blazer with  Eastern will
create the  Appalachian  Basin's largest natural gas producer." Mr. Dresner
and Egil Endresen,  president of Houston-based SEUS, indicated they hope to
retain a large number of Blazer's employees.
     Statoil,  one of the  world's  largest  net sellers of crude oil and a
substantial  supplier of natural gas to continental Europe, is also engaged
in the  refining  and  marketing  of  petroleum  products  as  well  as the
development of power generating facilities and other downstream businesses.
Through its Stamford,  Conn.-based subsidiary,  Statoil North America Inc.,
Statoil  supplies  approximately  500,000  barrels per day of crude oil and
refined products to North America.
     Ashland  Inc.  is a large  energy  and  chemical  company  engaged  in
petroleum refining and marketing; coal; and highway construction.

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