SECURITIES AND EXCHANGE COMMISSION

                          Washington, D. C. 20549


                                  FORM 8-K

                               CURRENT REPORT


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


Date of Report:  July 2, 1997
Date of earliest event reported:  July 1, 1997


                                ASHLAND INC.
  (Exact name of registrant as specified in its charter)


                                  Kentucky
               (State or other jurisdiction of incorporation)

       1-2918                                        61--0122250
(Commission File Number)                           (I.R.S. Employer
                                                    Identification No.)


1000 Ashland Drive, Russell, Kentucky                    41169
(Address of principal executive offices)               (Zip Code)


P.O. Box 391, Ashland, Kentucky                          41114
     (Mailing Address)                                 (Zip Code)


Registrant's telephone number, including area code (606) 329-3333






Item 5.  Other Events

     On July 1, 1997,  Ashland Inc. announced the completion of the sale of
Blazer Energy Corp., its domestic exploration and production subsidiary, to
Statoil,  a Norwegian energy company.  Statoil  purchased the Blazer Energy
stock through its U.S.  energy  management  subsidiary,  The Eastern Group,
Inc.  Terms  of the  transaction  remained  unchanged  from  terms  earlier
announced, with the holdings valued at $566 million.
     The foregoing  summary of the attached press release is qualified in
its entirety by the complete text of such document,  a copy  of which is
attached hereto.

Item 7.  Financial Statements and Exhibits
      (c)Exhibit
         99    Press Release
         



                                 SIGNATURES


         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.



                                                  ASHLAND INC.
                                        -----------------------------------
                                                  (Registrant)



Date:  July 1,   1997                    /s/ J. Marvin Quin
                                        -----------------------------------
                                        Name:    J. Marvin Quin
                                        Title:   Senior Vice President and
                                                 Chief Financial Officer





                              Exhibit Index

Exhibit No. 

    99   Press Release of Ashland Inc.                       
         dated July 1, 1997