Exhibit 99.2
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News Release
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UNION TEXAS PETROLEUM 1330 Post Oak Boulevard
[GRAPHIC OMITTED] P.O. Box 2120
Houston, Texas 77252-2120
(713) 623-6544
UNION TEXAS PETROLEUM INCREASES ITS 1997 CAPITAL SPENDING BUDGET
BY 17% FOR NEW EXPLORATION VENTURES AND OTHER GROWTH PROJECTS
Company Also Announces New Stock Ownership Guidelines
for Officers and Directors
Contact: Carol Cox
713-968-2714
Houston, May 12, 1997 -- Union Texas Petroleum Holdings, Inc. (NYSE:
UTH) today announced that its Board of Directors has approved a 17% increase in
the company's 1997 capital spending budget primarily for several new exploration
ventures that Union Texas has recently joined. With the increase, Union Texas'
1997 capital spending budget will rise to $269 million, up from its original
1997 capital budget of $229 million. The revised 1997 capital budget represents
a 45% boost over $186 million spent in 1996.
The independent energy company also announced today that its board
has adopted new stock ownership guidelines for Union Texas' officers and
directors.
INCREASED CAPITAL SPENDING EARMARKED FOR NEW EXPLORATION VENTURES
The majority of the increased capital budget for 1997 is earmarked
for three new exploration ventures in Kazakstan, Algeria and China. As recently
announced, Union Texas has formed 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 also recently has joined
subsidiaries of Phillips Petroleum Company in exploration ventures in the
Ghadames Basin in southeastern Algeria and Bohai Bay offshore northern China.
Union Texas has a 75% working interest in the Kazakstan/Caspian Sea venture, a
30% working interest in the Algeria venture, and a 40% working interest in the
China venture.
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Overall, Union Texas is increasing its 1997 capital spending plans
for its worldwide exploration ventures from approximately $68 million to about
$95 million, about 35% of the revised 1997 capital budget. In addition to the
ventures in Kazakstan, Algeria and China, the increased exploration budget
includes monies for new programs in Yemen and Latin America.
"Union Texas' higher capital budget for 1997 reflects the tremendous
emphasis we have placed on growing our company through new exploration ventures
and development projects," said Chairman and CEO John Whitmire. "We have added
eight new exploration ventures since the beginning of 1997 and are especially
pleased with the three most recently announced opportunities for exploration
exposure to outstanding proven basins in the Kazakstan/Caspian Sea region,
Algeria and China. Union Texas' highly profitable producing properties,
excellent cash flow and financial strength enable us to increase our capital
spending to accommodate these growth programs."
NEW GUIDELINES FOR STOCK OWNERSHIP
Under the new guidelines for stock ownership, officers and directors
of Union Texas will be expected to own within a five-year period a certain
minimum amount of the company's stock with a market value that is equal to at
least one to three times their annual base salary or annual board fees.
"We strongly support these new guidelines for stock ownership," said
Whitmire. "These guidelines are evidence of our total commitment to further
align the interests of our officers and directors with those of all of our
shareholders."
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 price volatility, exploration, development, operational
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
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UNION TEXAS PETROLEUM
REVISED 1997 CAPITAL SPENDING
(Dollars in Millions)
1996 Capital Original 1997 Revised 1997
Spending Capital Spending Capital Spending
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Exploration $ 36 $ 68 $ 95
Development 140 127 140
Petrochemicals 8 32 32
Other 2 2 2
Total $186 $229 $269