Exhibit 99.2
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News Release
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[GRAPHIC OMITTED] Union Texas Petroleum 1330 Post Oak Boulevard
P.O. Box 2120
Houston, Texas 77252-2120
(713)623-6544
UNION TEXAS PETROLEUM AND OMAN OIL COMPANY FORM NEW
EXPLORATION VENTURE ONSHORE KAZAKSTAN AND
OFFSHORE IN CASPIAN SEA
Contact: Carol Cox
713-968-2714
Houston, May 7, 1997 -- Union Texas Petroleum Holdings, Inc. (NYSE:
UTH) today announced that it has signed agreements to form a joint venture with
Oman Oil Company Limited to explore for, develop and produce oil and gas onshore
Kazakstan and offshore in the Kazakstan sector of the Caspian Sea.
Union Texas will serve as operator of the new venture and will own a
75% interest. Oman Oil, a state-owned project development company of Oman, will
retain a 25% interest. Terms of the agreements were not disclosed.
The venture will conduct exploration activities on two onshore blocks
in the Atyrau region of Kazakstan. Known as Blocks A and E, the tracts are
located north of the Tengiz oil field in northwestern Kazakstan. Block E borders
the Caspian Sea. The two tracts cover a total of about 4 million acres (16,000
square kilometers). The venture expects to acquire about 1,245 miles (2,000
kilometers) of seismic data over Blocks A and E during 1997 and 1998 and plans
to drill two exploration wells in 1999. The venture has budgeted approximately
$11 million gross for seismic and other exploration activities during 1997.
The Union Texas and Oman Oil joint venture has preferential rights to
select two offshore blocks in the unexplored but highly prospective Kazakstan
sector of the Caspian Sea. The Republic of Kazakstan plans to divide the
offshore sector into approximately 200 blocks encompassing a total of 103,000
square kilometers. The Union Texas and Oman Oil joint venture has the right to
make the 15th and 16th offshore block selections, respectively, following the
Kazakstancaspishelf Consortium members' selections of the first 14 blocks. The
Union Texas and Oman Oil joint venture will have the same terms for the offshore
blocks as the consortium members. The offshore block selections are expected to
take place during 1997's third quarter. The Republic of Kazakstan is then
anticipated to offer the remaining offshore acreage via an international bid
tender.
Union Texas has opened an office in Almaty, the capital of Kazakstan.
John W. J. Hardy, who recently directed Union Texas' U.K. North Sea operations
from its London offices, serves as President of the new venture in Kazakstan.
"This joint venture with Oman Oil Company marks a major milestone in
Union Texas' strategy to expand our operations and create a significant new core
oil and gas asset," said Union Texas Chairman and CEO John Whitmire. "Central
Asia offers unparalleled opportunities to add world-class production and
reserves. This opportunity gives us access to one of the early Kazakstan
production-sharing contracts with attractive fiscal terms. We are extremely
pleased to have this opportunity to work with Oman Oil in Kazakstan and the
Caspian Sea and look forward to beginning an aggressive exploration program this
year."
A spokesman for Oman Oil commented, "We are very happy to enter into
a long-term partnership with Union Texas, which is one of the largest
independent oil and gas companies and has over forty years of international
experience. Union Texas is a long-term partner of choice, financially strong and
a low-cost operator."
One of the largest independent producers located in the U.S.,
Houston-based Union Texas Petroleum Holdings, Inc. (NYSE:UTH) explores for and
produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and
other strategic areas. The company has petrochemical operations in Louisiana.
This news release contains forward-looking statements within the
meaning of the Securities Litigation Reform Act that involve risks and
uncertainties, including exploration, development, operational, marketing and
implementation risks, and other factors described from time to time in the
company's publicly available SEC reports, which could cause actual results to
differ materially.
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For additional information, contact:
Carol Cox, media John Zimmerman, analysts and investors
713-968-2714 713-968-2740
A map is available by contacting Union Texas Petroleum at 713-968-2716.