1
EXHIBIT 99.2
NEWS RELEASE
[UNION TEXAS PETROLEUM LETTERHEAD]
Contact: Carol L. Cox
(713) 968-2714
UNION TEXAS PETROLEUM ANNOUNCES $212 MILLION CAPITAL BUDGET FOR 1995,
PLANS TO INCREASE EXPLORATION SPENDING BY 85% OVER 1994
Houston, February 2, 1995 -- The board of directors of Union Texas
Petroleum Holdings, Inc. has approved a 1995 capital spending budget of
approximately $212 million, up from $131 million spent in 1994. The
exploration portion of the 1995 capital plan calls for an 85% increase over
1994 levels.
"A major thrust for Union Texas' capital spending in 1995 will be a
substantially expanded exploration program," said Chairman and CEO Clark
Johnson. "During 1995, we expect to spend about $74 million on exploration
activities, including at least nine exploratory wells in new venture areas in
Argentina, Alaska, Tunisia, Vietnam and Eastern Indonesia in addition to as
many as 20 wells in ongoing exploration programs in our producing areas in the
U.K. North Sea, Indonesia and Pakistan."
"Our exploration plan represents the highest level of international
exploration activity for Union Texas in our recent history. The 1995 program
provides exciting opportunities for Union Texas. We are committed to enhancing
value for our shareholders."
DEVELOPMENT PLANS
Union Texas has allocated approximately $132 million for oil and gas
development programs in the U.K. North Sea, Indonesia and Pakistan, up from $83
million spent in 1994.
- more -
2
-2-
A key focus for Union Texas' 1995 development program is the company's
participation in the development of the Britannia gas field in the U.K. North
Sea. Union Texas acquired a 9.42% unit interest in Britannia, the U.K. North
Sea's largest undeveloped gas field, during 1994. Of the $132 million
development budget for 1995, the company plans to spend about $47 million at
Britannia, which will include drilling activities and platform and facilities
construction. Overall, Union Texas' total share of development costs for
Britannia from 1994 through start-up of production in late 1998 is estimated at
approximately $200 million.
EXPLORATION PLANS
As part of its $74 million exploration budget in 1995, Union Texas has
earmarked approximately $41 million for exploration activities in offshore
Argentina, Alaska, Tunisia, Vietnam, Eastern Indonesia and other new venture
areas. A total of approximately $33 million is budgeted for the company's
ongoing exploration programs in the U.K. North Sea, Indonesia and Pakistan.
The exploration portion of Union Texas' 1994 capital spending was $40
million. The company's increased capital spending in 1995 will enable Union
Texas to participate in at least nine wells in new venture areas (compared to
four in 1994) and up to 20 wells in its producing areas (versus 11 wells in
1994). "We believe that our expanded exploration program for 1995 will enhance
our company's chance of finding significant reserves over time," said Mr.
Johnson.
PETROCHEMICAL OPERATIONS
For its petrochemical interests in Louisiana, Union Texas has
allocated approximately $5 million in 1995, primarily for the completion
- more -
3
-3-
of the additional 12th furnace at the company's jointly-owned ethylene plant
and for other projects to increase volumes and enhance productivity. The
company spent $6 million on its petrochemical operations in 1994.
ACQUISITIONS
The company also stated that it would continue to seek attractive
acquisition opportunities during 1995. Union Texas said its acquisition
strategy in 1995 would include the evaluation of both developed and undeveloped
reserves. The company's capital spending budget does not include any amounts
for acquisitions, but the company believes that its financial strength and
available credit give it the financial resources to make acquisitions. Union
Texas' 1994 capital spending of $131 million does not include $159 million for
the acquisition of the interest in the Britannia field.
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 also has petrochemical interests in the
U.S.
- more -
4
-4-
UNION TEXAS PETROLEUM HOLDINGS, INC.
CAPITAL SPENDING*
(Dollars in Millions)
PLANNED 1995 1994
------------ --------
United Kingdom
Exploration $ 13 $ 8
Development 35 34
Britannia 47 3
Indonesia
Exploration $ 9 $ 5
Development 41 40
Pakistan
Exploration $ 11 $ 4
Development 9 6
New Exploration
Ventures ** $ 41 $ 23
Petrochemicals $ 5 $ 6
Corporate $ 1 $ 2
---- ----
Total $212 $131 ***
* Includes the company's equity interests in the Unimar partnership and
excludes capitalized interest.
** Primarily includes Argentina, Alaska, Tunisia, Vietnam and Eastern
Indonesia.
*** Does not include $159 million for the acquisition of a 9.42% unit
interest in the Britannia field in the U.K. North Sea.
# # #