EXHIBIT 12.3 UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Six Months Ended June 30 ---------------------------- Millions of dollars 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings ....................................................................... $363 $152 Provision for income taxes ......................................................... 252 104 --------------------------- Earnings subtotal ............................................................... 615 256 Fixed charges included in earnings: Interest expense ................................................................ 147 146 Interest portion of rentals ..................................................... 21 25 --------------------------- Subtotal ..................................................................... 168 171 Earnings available before fixed charges ............................................ $783 $427 --------------------------- Fixed charges: Fixed charges included in earnings .............................................. 168 171 Capitalized interest ............................................................ 6 16 --------------------------- Total fixed charges .......................................................... $174 $187 --------------------------- Ratio of earnings to fixed charges ................................................. 4.5 2.3