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                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is entered into effective as of
__________________ (the "Effective Date"), by and between Ocean Energy, Inc., a
Texas corporation (the "Company"), and _____________________ ("Employee").

         WHEREAS, the Company has heretofore assumed the Employment Agreement
entered into effective as of ___________________, by and between Ocean Energy,
Inc. a Delaware corporation, and Employee which has been previously amended in
certain minor respects and is currently in effect (the "Employment Agreement");
and

         WHEREAS, the Company employs Employee and desires to continue such
employment relationship and Employee desires to continue such employment; and

         WHEREAS, the Company and Employee desire to enter into an agreement
reflecting the current terms of such employment relationship that replaces the
Employment Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants,
representations, warranties, and agreements contained herein, and for other
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

         1. Effect of Agreement. Effective as of the Effective Date, this
Agreement supersedes and replaces the Employment Agreement in its entirety and
the Employment Agreement shall be null and void and of no further force and
effect.

         2. Employment. The Company hereby employs Employee, and Employee hereby
accepts employment by the Company, on the terms and conditions set forth in this
Agreement.

         3. Term of Employment. Subject to the provisions for earlier
termination provided in this Agreement, the term of this Agreement (the "Term")
shall be five (5) years commencing on the Effective Date.

         4. Employee's Duties. During the Term of this Agreement, Employee shall
serve as ____________________________________ of the Company, with such duties
and responsibilities as may from time to time be assigned to him by the board of
directors of the Company (the "Board"), provided that such duties are consistent
with the customary duties of such position.

         Employee agrees to devote his full attention and time during normal
business hours to the business and affairs of the Company and to use reasonable
best efforts to perform faithfully and efficiently his duties and
responsibilities. Employee shall not, either directly or indirectly, enter into
any business or employment with or for any person, firm, association or
corporation other than the Company during the Term of this Agreement; provided,
however, that Employee shall not be prohibited from making financial investments
in any other company or business or from


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serving on the board of directors of any other company. Employee shall at all
times observe and comply with all lawful directions and instructions of the
Board.

         5. Base Compensation. For services rendered by Employee under this
Agreement, the Company shall pay to Employee a base salary ("Base Compensation")
of ______________ per annum payable in accordance with the Company's customary
pay periods and subject to customary withholdings. The amount of Base
Compensation shall be reviewed by the Board on an annual basis as of the close
of each fiscal year of the Company and may be increased as the Board may deem
appropriate. In the event the Board deems it appropriate to increase Employee's
annual base salary, said increased amount shall thereafter be the "Base
Compensation." Employee's Base Compensation, as increased from time to time, may
not thereafter be decreased unless agreed to by Employee. Nothing contained
herein shall prevent the Board from paying additional compensation to Employee
in the form of bonuses or otherwise during the Term of this Agreement.

         6. Additional Benefits. In addition to the Base Compensation provided
for in Section 5 herein, Employee shall be entitled to the following:

                  (a) Expenses. The Company shall, in accordance with any rules
         and policies that it may establish from time to time for executive
         officers, reimburse Employee for business expenses reasonably incurred
         in the performance of his duties. It is understood that Employee is
         authorized to incur reasonable business expenses for promoting the
         business of the Company, including reasonable expenditures for travel,
         lodging, meals and client or business associate entertainment. Request
         for reimbursement for such expenses must be accompanied by appropriate
         documentation.

                  (b) Disability Insurance. The Company has heretofore purchased
         and maintained a disability insurance policy on Employee. Employee owns
         and benefits from such insurance, and the Company has no interest
         whatsoever in such policy. The Company will continue to maintain such
         policy through February, 2000, and Employee will assume the
         responsibility for any maintenance of such policy after February, 2000.

                  (c) Vacation. Employee shall be entitled to five (5) weeks of
         vacation per year, without any loss of compensation or benefits.
         Employee shall not be entitled to compensation for, or to carry
         forward, any unused vacation time.

                  (d) General Benefits. Employee shall be entitled to
         participate in the various employee benefit plans or programs provided
         to the employees of the company in general, including but not limited
         to, health, dental, disability and life insurance plans, subject to the
         eligibility requirements with respect to each of such benefit plans or
         programs, and such other benefits or perquisites as may be approved by
         the Board during the Term of this Agreement. Nothing in this paragraph
         shall be deemed to prohibit the


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         Company from making any changes in any of the plans, programs or
         benefits described in this Section 6, provided the change similarly
         affects all officers of the Company similarly situated.

                  (e) Options. Upon the occurrence of a "Corporate Change" as
         defined in Section 8(e), Employee shall be considered as immediately
         and totally vested in any and all stock options or other similar awards
         previously made to Employee by the Company or its subsidiaries under a
         "Long Term Incentive Plan" duly adopted by the Board (such options or
         similar awards are hereinafter collectively referred to as "Options").

         7. Confidential Information. Employee, during the Term, may have access
to and become familiar with confidential information, secrets and proprietary
information concerning the business and affairs of the Company. As to such
confidential information, Employee agrees as follows:

                  (a) During the employment of Employee with the Company and
         thereafter Employee will not, either directly or indirectly, disclose
         to any third party without the written permission of the Company, nor
         use in any way (except as required in the course of his employment with
         the Company) any confidential information, secret or proprietary
         information of the Company. In the event of a breach or threatened
         breach of the provisions of this Section 7(a), the Company shall be
         entitled, in addition to any other remedies available to the Company,
         to an injunction restraining Employee from disclosing such confidential
         information.

                  (b) Upon termination of employment of Employee, for whatever
         reason, Employee shall surrender to the Company any and all documents,
         manuals, correspondence, reports, records and similar items then or
         thereafter coming into the possession of Employee which contain any
         confidential, secret or proprietary information of the Company.

         8. Termination. This Agreement may be terminated prior to the end of
its Term as set forth below:

                  (a) Resignation (other than for Good Reason). Employee may
         resign, including by reason of retirement, his position at any time by
         providing written notice of resignation to the Company in accordance
         with Section 11 hereof. In the event of such resignation, except in the
         case of resignation for Good Reason (as defined below), this Agreement
         shall terminate and Employee shall not be entitled to further
         compensation pursuant to this Agreement other than the payment of any
         unpaid Base Compensation accrued hereunder as of the date of Employee's
         resignation.

                  (b) Death. If Employee's employment is terminated due to his
         death, this Agreement shall terminate and the Company shall have no
         obligations to Employee or his


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         legal representatives with respect to this Agreement other than the
         payment of any unpaid Base Compensation previously accrued hereunder.

                  (c) Discharge.

                           (i) The Company may terminate Employee's employment
                  for any reason at any time upon written notice thereof
                  delivered to Employee in accordance with Section 11 hereof. In
                  the event that Employee's employment is terminated during the
                  Term by the Company for any reason other than his Misconduct
                  or Disability (both as defined below), then (A) the Company
                  shall pay in lump sum in cash to Employee, within fifteen (15)
                  days following the date of termination, an amount equal to the
                  product of (i) Employee's Base Compensation as in effect
                  immediately prior to Employee's termination, multiplied by
                  (ii) three, (B) for three years following the date of
                  termination, the Company, at its cost, shall provide or
                  arrange to provide Employee (and, as applicable, Employee's
                  dependents) with accident and group health insurance benefits
                  substantially similar to those which Employee (and Employee's
                  dependents) were receiving immediately prior to Employee's
                  termination; however, the welfare benefits otherwise
                  receivable by Employee pursuant to this clause (B) shall be
                  reduced to the extent comparable welfare benefits are actually
                  received by Employee (and/or Employee's dependents) during
                  such period under any other employer's welfare plan(s) or
                  program(s), with Employee being obligated to promptly disclose
                  to the Company any such comparable welfare benefits, (C) in
                  addition to the aforementioned compensation and benefits, the
                  Company shall pay in lump sum in cash to Employee within
                  fifteen (15) days following the date of termination an amount
                  equal to the product of (i) Employee's average bonus paid by
                  the Company during the most recent two (2) years immediately
                  prior to the date of termination, multiplied by (ii) three and
                  (D) Employee shall be considered as immediately and totally
                  vested in any and all Options previously made to Employee by
                  Company or its subsidiaries.

                           (ii) Notwithstanding the foregoing provisions of this
                  Section 8, in the event Employee is terminated because of
                  Misconduct, the Company shall have no obligations pursuant to
                  this Agreement after the Date of Termination other than the
                  payment of any unpaid Base Compensation accrued through the
                  Date of Termination. As used herein, "Misconduct" means (A)
                  the continued failure by Employee to substantially perform his
                  duties with the Company (other than any such failure resulting
                  from Employee's incapacity due to physical or mental illness
                  or any such actual or anticipated failure after the issuance
                  of a Notice of


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                  Termination by Employee for Good Reason), after a written
                  demand for substantial performance is delivered to Employee by
                  the Board, which demand specifically identifies the manner in
                  which the Board believes that Employee has not substantially
                  performed his duties, (B) the engaging by Employee in conduct
                  which is demonstrably and materially injurious to the Company,
                  monetarily or otherwise (other than such conduct resulting
                  from Employee's incapacity due to physical or mental illness
                  or any such actual or anticipated conduct after the issuance
                  of a Notice of Termination by Employee for Good Reason), or
                  (C) Employee's conviction for the commission of a felony.
                  Anything contained in this Agreement to the contrary
                  notwithstanding, the Chief Executive Officer of the Company
                  shall have the sole power and authority to terminate the
                  employment of Employee on behalf of the Company.

                  (d) Disability. If Employee shall have been absent from the
         full-time performance of Employee's duties with the Company for ninety
         (90) consecutive calendar days as a result of Employee's incapacity due
         to physical or mental illness, Employee's employment may be terminated
         by the Company for "Disability" and Employee shall not be entitled to
         further compensation pursuant to this Agreement, except that Employee
         shall be considered as immediately and totally vested in any and all
         Options previously granted to Employee by Company or its subsidiaries.

                  (e) Resignation for Good Reason. Employee shall be entitled to
         terminate his employment for Good Reason as defined herein. If Employee
         terminates his employment for Good Reason he shall be entitled to the
         compensation and benefits provided in Paragraph 8(c)(i) hereof. "Good
         Reason" shall mean the occurrence of any of the following circumstances
         without Employee's express written consent unless such breach or
         circumstances are fully corrected prior to the Date of Termination
         specified in the Notice of Termination given in respect hereof:

                           (i) the material breach of any of the Company's
                  obligations under this Agreement without Employee's express
                  written consent;

                           (ii) the continued assignment to Employee of any
                  duties inconsistent with the office of
                  __________________________;

                           (iii) the failure by the Company to pay to Employee
                  any portion of Employee's compensation on the date such
                  compensation is due;

                           (iv) the failure by the Company to continue to
                  provide Employee with benefits substantially similar to those
                  enjoyed by other officers who have entered into similar
                  employment agreements with Employer under any of the Company's


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                  medical, health, accident, and/or disability plans in which
                  Employee was participating immediately prior to such time;

                           (v) a change in the location of Employee's principal
                  place of employment by the Company by more than 50 miles from
                  the location where he was principally employed immediately
                  prior to the date of such change; or

                           (vi) the failure of the Company to obtain a
                  satisfactory agreement from any successor to assume and agree
                  to perform this Agreement, as contemplated in Section 13
                  hereof.

                           In addition, the occurrence of any Corporate Change
                  (as defined below), shall constitute "Good Reason" hereunder,
                  but only if Employee terminates his employment within ninety
                  (90) days following the effective date of such Corporate
                  Change.

                          A "Corporate Change" shall occur if (A) the Company
                  (1) shall not be the surviving entity in any merger,
                  consolidation or other reorganization (or survives only as a
                  subsidiary of an entity other than a previously wholly-owned
                  subsidiary of the Company) or (2) is to be dissolved and
                  liquidated, and as a result of or in connection with such
                  transaction, the persons who were directors of the Company
                  before such transaction shall cease to constitute a majority
                  of the Board, (B) any person or entity, including a "group" as
                  contemplated by Section 13(d)(3) of the Securities Exchange
                  Act of 1934, as amended, acquires or gains ownership or
                  control (including, without limitation, power to vote) of 20%
                  or more of the outstanding shares of the Company's voting
                  stock (based upon voting power), and as a result of or in
                  connection with such transaction, the persons who were
                  directors of the Company before such transaction shall cease
                  to constitute a majority of the Board, or (C) the Company
                  sells all or substantially all of the assets of the Company to
                  any other person or entity (other than a wholly-owned
                  subsidiary of the Company) in a transaction that requires
                  shareholder approval pursuant to the Texas Business
                  Corporation Act.

                  (f) Notice of Termination. Any purported termination of
         Employee's employment by the Company under Sections 8(c)(ii) or 8(d),
         or by Employee under Section 8(e), shall be communicated by written
         Notice of Termination to the other party hereto in accordance with
         Section 11 hereof. For purposes of this Agreement, a "Notice of
         Termination" shall mean a notice which, if by the Company and is for
         Misconduct or Disability, shall set forth in reasonable detail the
         reason for such termination of Employee's employment, or in the case of
         resignation by Employee for Good Reason, said notice must specify in
         reasonable detail the basis for such resignation. A Notice of


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         Termination given by Employee pursuant to Section 8(e) shall be
         effective even if given after the receipt by Employee of notice that
         the Board has set a meeting to consider terminating Employee for
         Misconduct. Any purported termination for which a Notice of Termination
         is required which is not effected pursuant to this Section 8(f) shall
         not be effective.

                  (g) Date of Termination. "Date of Termination" shall mean the
         date specified in the Notice of Termination, provided that the Date of
         Termination shall be at least 15 days following the date the Notice of
         Termination is given. Notwithstanding the foregoing, in the event
         Employee is terminated for Misconduct, the Company may refuse to allow
         Employee access to the Company's offices (other than to allow Employee
         to collect his personal belongings under the Company's supervision)
         prior to the Date of Termination.

                  (h) Mitigation. Employee shall not be required to mitigate the
         amount of any payment provided for in this Section 8 by seeking other
         employment or otherwise, nor shall the amount of any payment provided
         for in this Agreement be reduced by any compensation earned by Employee
         as a result of employment by another employer, except that any
         severance amounts payable to Employee pursuant to the Company's
         severance plan or policy for employees in general shall reduce the
         amount otherwise payable pursuant to Sections 8(c)(i) or 8(e).

                  (i) Excess Parachute Payments. Notwithstanding anything in
         this Agreement to the contrary, to the extent that any payment or
         benefit received or to be received by Employee hereunder in connection
         with the termination of Employee's employment would, as determined by
         tax counsel selected by the Company, constitute an "Excess Parachute
         Payment" (as defined in Section 280G of the Internal Revenue Code), the
         Company shall fully "gross-up" such payment so that Employee is in the
         same "net" after-tax position he would have been if such payment and
         gross-up payments had not constituted Excess Parachute Payments.

                  (j) Resignation from Board. In the event Employee is a member
         of the board of directors of the Company or any of its subsidiaries,
         and Employee's employment by the Company is terminated for any reason
         (other than Employee's death), Employee shall immediately resign as a
         member of such board of directors upon the written request of the
         Chairman of the Board. Nothing herein shall be deemed to limit the
         power of the shareholders of the Company to at any time remove any
         director, including, without limitation, Employee, in accordance with
         applicable law.

         9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent
or limit Employee's continuing or future participation in any benefit, bonus,
incentive, or other plan or


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program provided by the Company or any of its affiliated companies and for which
Employee may qualify, nor shall anything herein limit or otherwise adversely
affect such rights as Employee may have under any Options with the Company or
any of its affiliated companies.

         10. Assignability. The obligations of Employee hereunder are personal
and may not be assigned or delegated by him or transferred in any manner
whatsoever, nor are such obligations subject to involuntary alienation,
assignment or transfer. The Company shall have the right to assign this
Agreement and to delegate all rights, duties and obligations hereunder, either
in whole or in part, to any parent, affiliate, successor or subsidiary
organization or company of the Company, so long as the obligations of the
Company under this Agreement remain the obligations of the Company.

         11. Notice. For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
Company at its principal office address, directed to the attention of the Board
with a copy to the Secretary of the Company, and to Employee at Employee's
residence address on the records of the Company or to such other address as
either party may have furnished to the other in writing in accordance herewith
except that notice of change of address shall be effective only upon receipt.

         12. Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

         13. Successors; Binding Agreement.

                  (a) The Company will require any successor (whether direct or
         indirect, by purchase, merger, consolidation or otherwise) to all or
         substantially all of the business and/or assets of the Company to
         expressly assume and agree to perform this Agreement in the same manner
         and to the same extent that the Company would be required to perform it
         if no such succession had taken place. Failure of the Company to obtain
         such agreement prior to the effectiveness of any such succession shall
         be a breach of this Agreement and shall entitle Employee to
         compensation from the Company in the same amount and on the same terms
         as he would be entitled to hereunder if he terminated his employment
         for Good Reason, except that for purposes of implementing the
         foregoing, the date on which any such succession becomes effective
         shall be deemed the Date of Termination. As used herein, the term
         "Company" shall include any successor to its business and/or assets as
         aforesaid which executes and delivers the Agreement provided for in
         this Section 13 or which otherwise becomes bound by all terms and
         provisions of this Agreement by operation of law.


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                  (b) This Agreement and all rights of Employee hereunder shall
         inure to the benefit of and be enforceable by Employee's personal or
         legal representatives, executors, administrators, successors, heirs,
         distributees, devisees and legatees. If Employee should die while any
         amounts would be payable to him hereunder if he had continued to live,
         all such amounts, unless otherwise provided herein, shall be paid in
         accordance with the terms of this Agreement to Employee's devisee,
         legatee, or other designee or, if there be no such designee, to
         Employee's estate.

         14. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by Employee and such officer as may be specifically
authorized by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or in compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. This Agreement is an integration of the parties
agreement; no agreement or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party, except those which are set forth expressly in this Agreement. THE
VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL
BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS.

         15. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

         16. Arbitration. Either party may elect that any dispute or controversy
arising under or in connection with this Agreement be settled by arbitration in
Houston, Texas in accordance with the rules of the American Arbitration
Association then in effect. If the parties cannot mutually agree on an
arbitrator, then the arbitration shall be conducted by a three arbitrator panel,
with each party selecting one arbitrator and the two arbitrators so selected
selecting a third arbitrator. The findings of the arbitrator(s) shall be final
and binding, and judgment may be entered thereon in any court having
jurisdiction. The findings of the arbitrator(s) shall not be subject to appeal
to any court, except as otherwise provided by applicable law. The arbitrator(s)
may, in his or her (or their) own discretion, award legal fees and costs to the
prevailing party.


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         IN WITNESS WHEREOF, the parties have executed this Agreement on
_____________, effective for all purposes as provided above.

                                                 OCEAN ENERGY, INC.



                                                 By:
                                                    ---------------------------
                                                 Name:
                                                 Title:


                                                 EMPLOYEE:



                                                 ------------------------------


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