SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 11-K
ANNUAL REPORT
____________________
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
____________________
For the Fiscal Year Ended December 31, 1995
_____________________
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
Commission File No. 1-5591
______________________
PENNZOIL COMPANY
Pennzoil Place, P. O. Box 2967
Houston, Texas 77252-2967
(Name of issuer of securities held pursuant to the plan and
address of its principal executive office)
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee,
Pennzoil Company Savings and
Investment Plan:
We have audited the accompanying statements of net assets available
for benefits of the Pennzoil Company Savings and Investment Plan
(the Plan) as of December 31, 1995 and 1994, and the related
statement of changes in net assets available for benefits for the
year ended December 31, 1995. These financial statements and the
schedules referred to below are the responsibility of the Plan's
administrative committee. Our responsibility is to express an
opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by the Plan's administrative committee, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for
benefits of the Plan as of December 31, 1995 and 1994, and the
changes in net assets available for benefits for the year ended
December 31, 1995, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules
of assets held for investment purposes as of December 31, 1995, included
as Schedule I, and reportable transactions (series of investment
transactions) for the year ended December 31, 1995, included as
Schedule II, are presented for purposes of additional analysis
and are not a required part of the basic financial statements but
are supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The Fund Information in
the statements of net assets available for benefits and statement of
changes in net assets available for benefits is presented for purposes of
additional analysis rather than to present the net assets available for
benefits and changes in net assets available for benefits of each fund.
The supplemental schedules and Fund Information have been subjected to the
auditing procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all material respects
in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Houston, Texas
June 18, 1996
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
DECEMBER 31, 1995
Participant Directed Funds
------------------------------------------------------------------------------------
Merrill J. P. Fidelity Merrill Davis
Lynch Morgan Advisor Lynch New
Retirement Institutional Income & Equity York
Preservation Bond Growth Index Venture
Trust Fund Fund Trust Fund
------------ ------------ ------------ ------------ ------------
ASSETS:
Investments, at current value-
Pennzoil Company common stock $ - $ - $ - $ - $ -
Battle Mountain Gold Company
common stock - - - - -
Merrill Lynch Retirement
Preservation Trust 21,462,020 - - - -
Mutual funds - 1,070,138 3,799,680 23,160,772 7,828,868
Participant loans - - - - -
Receivables-
Employee contributions 65,998 4,552 22,758 54,619 34,137
Employer contributions - - - - -
Investment income - - - - -
------------ ------------ ------------ ------------ ------------
Total assets 21,528,018 1,074,690 3,822,438 23,215,391 7,863,005
LIABILITIES:
Due to trustee - - - - -
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS $21,528,018 $ 1,074,690 $ 3,822,438 $23,215,391 $ 7,863,005
============ ============ ============ ============ ============
Non-
Participant
Participant Directed Funds Directed
------------------------------ ------------
Company Company
Loan Stock Stock
Fund Fund Fund Total
------------ ------------ ------------ -------------
ASSETS:
Investments, at current value-
Pennzoil Company common stock $ - $16,075,432 $43,200,481 $ 59,275,913
Battle Mountain Gold Company
common stock - 80,468 99,470 179,938
Merrill Lynch Retirement
Preservation Trust - - - 21,462,020
Mutual funds - - - 35,859,458
Participant loans 6,042,027 - - 6,042,027
Receivables-
Employee contributions - 45,514 - 227,578
Employer contributions - - 181,383 181,383
Investment income - - 17,232 17,232
------------ ------------ ------------ -------------
Total assets 6,042,027 16,201,414 43,498,566 123,245,549
LIABILITIES:
Due to trustee - 397,193 220,691 617,884
------------ ------------ ------------ -------------
NET ASSETS AVAILABLE
FOR BENEFITS $ 6,042,027 $15,804,221 $43,277,875 $122,627,665
============ ============ ============ =============
<FN>
See notes to financial statements.
</FN>
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
DECEMBER 31, 1994
Participant Directed Funds
------------------------------------------------------------------------------------
Merrill J. P. Fidelity Merrill Davis
Lynch Morgan Advisor Lynch New
Retirement Institutional Income & Equity York
Preservation Bond Growth Index Venture
Trust Fund Fund Trust Fund
------------ ------------ ------------ ------------ ------------
ASSETS:
Investments, at current value-
Pennzoil Company common stock $ - $ - $ - $ - $ -
Battle Mountain Gold Company
common stock - - - - -
Merrill Lynch Retirement
Preservation Trust 20,531,493 - - - -
Mutual funds - 485,011 2,697,361 17,215,099 3,152,931
Cash and temporary investments - - - - -
Participant loans - - - - -
Receivables-
Employee contributions 69,644 2,110 12,662 59,091 14,773
Employer contributions - - - - -
Investment income - - - - -
------------ ------------ ------------ ------------ ------------
Total assets 20,601,137 487,121 2,710,023 17,274,190 3,167,704
LIABILITIES:
Payable to brokers - - 32,815 - 33,597
Due to trustee - - - - -
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS $20,601,137 $ 487,121 $ 2,677,208 $17,274,190 $ 3,134,107
============ ============ ============ ============ ============
Non-
Participant
Participant Directed Funds Directed
------------------------------ ------------
Company Company
Loan Stock Stock
Fund Fund Fund Total
------------ ------------ ------------ -------------
ASSETS:
Investments, at current value-
Pennzoil Company common stock $ - $16,032,476 $39,382,813 $ 55,415,289
Battle Mountain Gold Company
common stock - 121,586 150,297 271,883
Merrill Lynch Retirement
Preservation Trust - - - 20,531,493
Mutual funds - - - 23,550,402
Cash and temporary investments - - - -
Participant loans 5,268,476 - - 5,268,476
Receivables-
Employee contributions - 52,760 - 211,040
Employer contributions - - 171,227 171,227
Investment income - - 6,270 6,270
------------ ------------ ------------ -------------
Total assets 5,268,476 16,206,822 39,710,607 105,426,080
LIABILITIES:
Payable to brokers - - - 66,412
Due to trustee - - 361,349 361,349
------------ ------------ ------------ -------------
NET ASSETS AVAILABLE
FOR BENEFITS $ 5,268,476 $16,206,822 $39,349,258 $104,998,319
============ ============ ============ =============
<FN>
See notes to financial statements.
</FN>
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
FOR THE YEAR ENDED DECEMBER 31,1995
Participant Directed Funds
----------------------------------------------------------------------------------------
Merrill J.P. Fidelity Merrill Davis
Lynch Morgan Advisor Lynch New
Retirement Institutional Income & Equity York
Preservation Bond Growth Index Venture
Trust Fund Fund Trust Fund
-------------- ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year $ 20,601,137 $ 487,121 $ 2,677,208 $ 17,274,190 $ 3,134,107
CONTRIBUTIONS:
Employee 3,520,970 262,700 1,156,955 2,863,763 1,801,945
Employer - - - - -
Rollovers from qualified plans 704,429 137,370 253,207 191,366 220,368
(Note 1)
INVESTMENT INCOME:
Dividends - 13,519 144,098 19 553,054
Interest 1,290,033 26,584 - - -
Loan Repayment Interest 149,368 6,608 24,895 112,714 51,137
REALIZED GAIN (LOSS) ON SALE
OF INVESTMENTS - 4,045 35,903 769,237 132,634
UNREALIZED APPRECIATION /
(DEPRECIATION) OF INVESTMENTS - 65,077 254,081 5,592,978 948,480
NET TRANSFERS AMONG FUNDS AND
OTHER PLANS (Note 1) (836,862) 122,806 (245,049) (283,249) 1,586,683
ADMINISTRATIVE EXPENSES (Note 1) (13,581) (234) (735) (5,420) (1,261)
DISTRIBUTIONS AND WITHDRAWALS (3,351,904) (41,930) (425,155) (2,797,811) (455,046)
(Note 1)
PARTICIPANT LOANS (Note 1)
New Loans Issued (1,371,145) (43,237) (181,862) (1,091,387) (335,467)
Principal Received 806,893 34,025 128,149 561,867 225,102
OTHER 28,680 236 743 27,124 1,269
------------- ------------ ------------- -------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 21,528,018 $ 1,074,690 $ 3,822,438 $ 23,215,391 $ 7,863,005
============== ============ ============= ============== ==============
Non-
Participant
Participant Directed Funds Directed
--------------------------------- --------------
Company Company
Loan Stock Stock
Fund Fund Fund Total
-------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year $ 5,268,476 $ 16,206,822 $ 39,349,258 $104,998,319
CONTRIBUTIONS:
Employee - 2,383,957 - 11,990,290
Employer - - 9,900,260 9,900,260
Rollovers from qualified plans - 53,905 - 1,560,645
(Note 1)
INVESTMENT INCOME:
Dividends - 922,211 2,408,008 4,040,909
Interest - - 10,961 1,327,578
Loan Repayment Interest - 138,933 - 483,655
REALIZED GAIN (LOSS) ON SALE
OF INVESTMENTS - (562,861) (922,690) (543,732)
UNREALIZED APPRECIATION /
(DEPRECIATION) OF INVESTMENTS - (58,459) (154,791) 6,647,366
NET TRANSFERS AMONG FUNDS AND
OTHER PLANS (Note 1) - 43,438 (321,368) 66,399
ADMINISTRATIVE EXPENSES (Note 1) - (4,563) (1,926) (27,720)
DISTRIBUTIONS AND WITHDRAWALS (Note 1) (860,675) (2,855,473) (7,191,999) (17,979,993)
PARTICIPANT LOANS (Note 1)
New Loans Issued 4,070,115 (1,047,017) - -
Principal Received (2,480,634) 724,598 - -
OTHER 44,745 (141,270) 202,162 163,689
------------- ------------- ------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 6,042,027 $ 15,804,221 $ 43,277,875 $122,627,665
============== ============= ============= ==============
<FN>
See notes to financial statements.
</FN>
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE PLAN:
General
The Pennzoil Company Savings and Investment Plan (the Plan) was
established effective December 20, 1986, by Pennzoil Company. The
purpose of the Plan is to encourage employees of Pennzoil Company
and participating subsidiaries and affiliated companies
(collectively referred to as Pennzoil) to save, and invest
systematically, a portion of their current compensation in order
that they may have an additional source of income upon their
retirement or disability, or for their families in the event of
their death.
Each person employed by Pennzoil as of December 20, 1986 (effective
date), who was a member of the Pennzoil Company and Participating
Companies Employees Stock Purchase Plan (Pennzoil Stock Purchase
Plan) or the Employee Stock Ownership Plan of Pennzoil Company
(Pennzoil Stock Ownership Plan), became eligible to participate in
the Plan on that date. All other salaried employees become
eligible to participate in the Plan on the effective date or entry
date coinciding with or immediately following their completion of
one year of service. Effective January 1, 1989, the account
balances of all hourly employees (if such hourly employee was a
member of a collective bargaining unit to which the Plan had been
made available) were transferred to the Pennzoil Company Savings
and Investment Plan for Hourly Employees (Hourly Plan). Upon
changing wage status, a participant's account balance is
transferred between the Plan and the Hourly Plan. Such transfers
are reflected at current value as of the date of transfer in the
accompanying financial statements.
Effective October 24, 1986, the Pennzoil Stock Purchase Plan and
Pennzoil Stock Ownership Plan were terminated. As a result of
these terminations, participants were able to elect to receive all
Pennzoil Company common stock (Common Stock) and Battle Mountain
Gold Company common stock (Battle Mountain Stock), as well as the
cash value of any related fractional shares, or to transfer such
vested amounts to the Plan.
In January 1990, Pennzoil acquired 80 percent (on a fully diluted
basis) of the common stock of Jiffy Lube International, Inc.
Effective October 1, 1990, the board of directors of Pennzoil
approved the merger of the assets of the Jiffy Lube International,
Inc. 401(k) Plan and Trust Agreement (Jiffy Lube Plan) into the
Plan. Accordingly, the account balances of participants in the
Jiffy Lube Plan were transferred to the Plan. The Pennzoil Stock
Purchase Plan, the Pennzoil Stock Ownership Plan and the Jiffy Lube
Plan are collectively referred to as the Prior Plans.
The transferred amounts applicable to the Prior Plans are
maintained in separate accounts for each participant (Prior Plan
Accounts) segregated into amounts representing each participant's
employee and employer accounts under the Prior Plans (see
"Investment Choices" below).
Contributions
In order to participate in the Plan, an eligible employee may
authorize, by payroll deduction, a contribution of not less than
1 percent and not more than 12 percent of annual compensation.
Employee contributions may be made "after-tax" or, under a
Section 401(k) option, on a "before-tax" basis. Pennzoil will
contribute an amount equal to 100 percent of the first 6 percent of
each employee's contribution.
Upon written request filed with the administrative committee, a
participant in the Plan or an employee of Pennzoil who is otherwise
eligible to participate in the Plan but who has not yet completed
the participation requirements may transfer an amount from another
qualified investment plan (Rollover Amount) into the Plan, provided
that such Rollover Amount is transferred in the form of cash. The
Rollover Amount will be deposited in an investment fund and shall
at all times be fully vested and nonforfeitable and share in the
income of the investment fund. However, such Rollover Amount will
not share in employer matching contributions.
Investment Choices
Employer contributions are invested solely in Common Stock. At
Pennzoil's option, employer contributions may be made either in
cash or in Common Stock. Therefore, the statement of net assets
available for benefits and statement of changes in net assets
available for benefits present participant directed and non-
participant directed activity separately. During 1995, Pennzoil
contributed 218,232 shares of its Common Stock valued at the
average of the high and low market prices on the date of the
contribution. All employee and employer contributions (other than
stock) are initially invested in interest-bearing short-term,
highly liquid investments and are classified in the accompanying
statements of net assets available for benefits under the caption
"Cash and temporary investments."
Participants who have attained age 55 may direct all or a part of their
existing employer contributions to be invested among the various
investment options. Employee contributions are invested as
designated by participating employees in the following investment
funds:
Fund Name Type of Investments(s)
- -------------------------- ----------------------------------
I. Merrill Lynch Retirement Invests primarily in guaranteed investment
Preservation Trust contracts (generally with insurance companies
or banks which agree to return principal
and a stated rate of return over a specified
period of time) and U.S. Government and U.S.
Government Agency securities.
II. J. P. Morgan Institutional Normally, at least 65% of the fund's assets
Bond Fund will be represented by investment in
securities rated "A" or better by a major
ratings agency. The fund's duration
(a measure of average maturity) ranges
between 3-1/2 and 5-1/2 years.
III. Fidelity Advisor Income Invests in a diversified portfolio of
and Growth Fund equity and fixed-income securities
with income, growth of income and capital
appreciation potential.
IV. Merrill Lynch Equity Consists of common stocks that, to
Index Trust the extent possible, duplicate the
composition of Standard & Poor's Index
of 500 stocks.
V. Davis New York Venture Invests primarily in common stock and
Fund (formerly New York securities convertible into common
Venture Fund) stock. The fund ordinarily invests in
securities which management believes
have above-average appreciation
potential.
VI. Company Stock Fund Common stock of Pennzoil Company
Under the terms of the Plan, Prior Plan Accounts are not commingled
with other Plan assets for investment purposes, are not allocated
investment income from other Plan assets and are not allocated
employer contributions. In addition, amounts transferred to the
Plan from the Pennzoil Stock Purchase Plan and Pennzoil Stock
Ownership Plan must remain invested in Common Stock and Battle
Mountain Stock. Amounts transferred from the employer account of
the Jiffy Lube Plan must remain invested in Common Stock while
amounts transferred from the employee account may be invested in
any one of the six options described above. Dividends or other
income earned on shares of Common Stock and Battle Mountain Stock
in the Prior Plan Accounts are required to be reinvested in Common
Stock. Participants are fully vested in such Prior Plan Accounts
and will receive distributions upon giving written notice to the
administrative committee for withdrawals or upon termination of
employment. Included in Prior Plan Accounts at December 31, 1995
and 1994, respectively, are 78,293 and 95,260 shares of Common
Stock and 21,169 and 24,717 shares of Battle Mountain Stock which
have been reflected in the Non-Participant Directed Company Stock
Fund in the accompanying financial statements. The fair value of
the Common Stock was $3,307,897 at December 31, 1995, and
$4,203,348 at December 31, 1994. The fair value of the Battle
Mountain Stock was $179,938 at December 31, 1995, and $271,883 at
December 31, 1994.
Loans
A participant may apply to the administrative committee of the Plan
to borrow from his accounts, subject to certain limitations. Such
loans will be for a term not to exceed five years (20 years in the
case of loans to purchase a primary residence) and cannot exceed
the lesser of $50,000 or 50 percent of the participant's account
balances.
Participant loans are reported as an asset of the Loan Fund and
principal and interest payments received are transferred to the
investment funds based on the participant's current contribution
elections.
Vesting and Disposition of Forfeitures
Participants are always fully vested in employee contributions.
Participants vest in employer contributions at a rate of 25 percent
per year beginning at the end of two years of service, becoming
fully vested after five years of service or attainment of age 55.
Any nonvested portion of employer contributions shall be forfeited
upon termination. Forfeitures shall be allocated as follows:
first, to reinstate any employer contribution amounts of
participants who return to service and second, to restore any
amounts previously forfeited as unclaimed benefits. Any remaining
amounts are applied to reduce succeeding employer contributions.
Withdrawals
Withdrawals may be made from either of an employee's previous pre-
tax or after-tax contributions, net of previous withdrawals, upon
written notice to the administrative committee. After-tax
withdrawals cause the participants to forfeit the right to
participate in the Plan for 180 days, while pre-tax withdrawals are
allowed only when the participant is age 59-1/2 or older, unless a
financial hardship exists. Hardship withdrawals will cause the
participants to be suspended from making further contributions for
365 days. Withdrawals may be made from employer contributions only
if the participant is fully vested and only after withdrawing all
amounts from any Prior Plan Accounts and any Rollover Amounts, and
not being in a suspended status.
Distribution of Benefits
Benefits are payable to participants or their beneficiaries at
retirement, permanent disability, death or termination of service.
Plan Administration
The Plan is administered by an administrative committee consisting
of at least three members appointed by the board of directors of
Pennzoil Company. Merrill Lynch Trust Company (Trustee) is sole
trustee of the Plan. All administrative expenses are borne by
Pennzoil Company with the exception of fees for investment
management and loan processing fees for participant loans.
The Plan is subject to reporting and regulations pursuant to the
Employee Retirement Income Security Act of 1974 (ERISA).
Termination or Amendment of the Plan
The Plan may be terminated, amended or modified by the board of
directors of Pennzoil Company at any time. Upon complete or
partial termination of the Plan, all amounts credited to the
accounts with respect to which the Plan has been terminated shall
become fully vested and nonforfeitable.
2. SUMMARY OF ACCOUNTING POLICIES:
Basis of Accounting
The financial statements of the Plan are presented on the accrual
basis of accounting. Amounts allocated to accounts of persons who
have withdrawn from participation in the earnings and operations of
the Plan are not recorded as a liability of the Plan but are
classified as a component of net assets available for benefits.
There were no such amounts outstanding at December 31, 1995 and 1994.
A separate account is maintained for each participant
which reflects the participant's contributions, net of
withdrawals, and the participant's allocable share of Pennzoil
Company's contributions and the Plan's investment earnings.
Management's Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan's
management to use estimates and assumptions that affect the
accompanying financial statements and disclosures. Actual results
could differ from these estimates.
Asset Valuation
The Plan's investments are reflected in the accompanying financial
statements at year-end current values, which represent fair values,
except for the Retirement Preservation Trust, which is stated at
contract value. For the Company Stock Fund, fair value was
determined by using the closing price of the securities held as
listed on the New York Stock Exchange on the last trading day of
the Plan year. Fair value of the mutual funds was determined based
on the closing price of the securities held by the collective fund
as listed on the applicable stock exchange on the last trading day
of the Plan year and the number of participating units held by the
Plan. Contract value for the Retirement Preservation Trust was
determined based on contributions made under the investment
contract plus interest earned at the contract's rate less funds
used to pay investment fees charged by the insurance companies.
Realized gains (losses) are calculated based on proceeds from the
sale of assets and the current value of the assets at the beginning
of the Plan year or at time of purchase if acquired during the
current Plan year. Unrealized appreciation (depreciation) of
investments is calculated based on the current value of the assets
at the end of the Plan year and the current value of the assets at
the beginning of the Plan year or at time of purchase if acquired
during the current Plan year.
3. FEDERAL INCOME TAXES:
The Plan received a determination letter on October 26, 1994 that
the Plan, as currently designed, is in compliance with the
applicable requirements of the Internal Revenue Code of 1986, as
amended (the Code). The Internal Revenue Service concluded that
the Plan is designed and operated in compliance with the applicable
requirements of the Code. Therefore, the Plan was qualified and
the related trust was tax-exempt as of December 31, 1995 and 1994.
SCHEDULE I
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
Current
Identity of Issue Description of Investment Cost Value
- --------------------- ------------------------- ------------ ------------
EQUITY SECURITIES:
Common stock-
Pennzoil Company <F1> 1,402,980 shares--$.83-1/3 par value $77,923,030 $59,275,913
Battle Mountain Gold Company 21,169 shares--$.10 par value 95,857 179,938
---------- -----------
Total equity securities 78,018,887 59,455,851
---------- ----------
INVESTMENT CONTRACTS:
Merrill Lynch Retirement
Preservation Trust <F1> 21,462,020 units 21,462,020 21,462,020
---------- ----------
MUTUAL FUNDS:
Merrill Lynch Equity
Index Trust <F1> 577,691 units 17,357,855 23,160,772
Fidelity Advisor Income & Growth 241,864 units 3,615,192 3,799,680
Davis New York Venture Fund 539,178 units 7,054,551 7,828,868
J.P. Morgan Institutional Bond Fund 105,641 units 1,020,254 1,070,138
---------- ----------
Total mutual funds 29,047,852 35,859,458
---------- ----------
OTHER:
Participant loans <F1>, at interest
rates ranging from 7.0% to 9.5% 6,042,027 6,042,027
---------- ---------
Total assets held for
investment purposes $134,570,786 $122,819,356
============ ============
<FN>
<F1> Represents party in interest.
</FN>
SCHEDULE II
PENNZOIL COMPANY SAVINGS AND INVESTMENT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
(SERIES OF INVESTMENT TRANSACTIONS)
FOR THE YEAR ENDED DECEMBER 31, 1995
Number of
Units or
Face Value Identity of Party Involved Purchase Selling Cost of Net Gain/
Amount and Description of Assets Price<F1> Price <F1> Asset (Loss)
- --------- --------------------------- ------------ ----------- --------- ---------
Pennzoil Company common stock,
$.83-1/3 par value -
198,020 Purchases (594 transactions) $9,067,696 $ - $9,067,696 $ -
148,132 Sales (739 transactions) - 6,712,266 8,213,658 (1,501,392)
Merrill Lynch Equity Index Trust-
129,958 Purchases (466 transactions) 4,534,451 - 4,534,451 -
141,523 Sales (629 transactions) - 4,951,947 4,182,710 769,237
Merrill Lynch Retirement
Preservation Trust-
7,872,150 Purchases (819 transactions) 7,870,104 - 7,870,104 -
6,941,623 Sales (635 transactions) - 6,941,623 6,941,623 -
Davis New York Venture Fund
349,281 Purchases (414 transactions) 4,868,887 - 4,868,887 -
89,613 Sales (322 transactions) - 1,240,659 1,108,025 132,634
<FN>
<F1> Current value of asset on transaction date is equal to the selling price/purchase price.
Prices are shown net of related expenses.
NOTE: This schedule is a listing of series of investment transactions
in the same security which exceed 5% of the current value of the Plan's
assets as of the beginning of the Plan year.
</FN>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Administrative Committee has duly caused this report to be
signed by the undersigned thereunto duly authorized.
PENNZOIL COMPANY SAVINGS AND
INVESTMENT PLAN
By S/N James W. Shaddix
James W. Shaddix
Chairman of the Administrative Committee
June 27, 1996
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report dated June 18, 1996, included herein, into
Pennzoil Company's previously filed Registration Statement on Form S-8
No. 33-51473.
ARTHUR ANDERSEN LLP
Houston, Texas
June 27, 1996