UNIMAR COMPANY

                             TABLE OF CONTENTS



                                                       
               
PART I.  FINANCIAL INFORMATION
               
  Item 1.  Financial Statements

           Condensed Consolidated Statements of Earnings
             For the Three Months and Six Months ended
             June 30, 1997 and June 30, 1996  . . . . . . . 1
    
           Condensed Consolidated Balance Sheets as of
             June 30, 1997 and December 31, 1996. . . . . . 2

           Condensed Consolidated Statements of 
             Cash Flows for the Six Months ended
             June 30, 1997 and June 30, 1996. . . . . . . . 3

           Notes to Condensed Consolidated Financial 
             Statements as of June 30, 1997 . . . . . . . . 4
           

  Item 2.  Management's Discussion and Analysis of 
             Financial Condition and Results of 
             Operations . . . . . . . . . . . . . . . . . . 6


PART II.  OTHER INFORMATION

  Item 5.  Other Information. . . . . . . . . . . . . . . . 10

  Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . 10


SIGNATURES  . . . . . . . . . . . . . . . . . . . . . . . . 11
                                   <PAGE>
                 
PART I.   FINANCIAL INFORMATION

                    UNIMAR COMPANY AND SUBSIDIARIES

             Condensed Consolidated Statements of Earnings
                        (Thousands of dollars)
                              (Unaudited)
<TABLE>

<CAPTION>
                         Three Months Ended     Six Months Ended
                              June 30,                 June 30,     
                             1997     1996          1997      1996   
                                           
<S>                        <C>       <C>          <C>       <C>
Oil and gas production 
revenues                    $50,042   $57,615      $116,325  $126,211

Production costs              6,524     6,009       12,400    11,882  
Depletion, depreciation
and amortization              9,893    10,856       21,513    23,704 
Exploration costs 
including dry holes              64      (111)         312       247

Operating profit             33,561    40,861       82,100    90,378


General and administrative
expenses                        234       332          544       569
Other income                    (87)      (66)        (203)     (155)

Earnings before income 
taxes                        33,414    40,595       81,759    89,964

Income tax expense
   Current                   23,992    30,284       56,842    64,068 
   Deferred                  (1,932)   (1,876)      (3,863)   (3,752)
                             22,060    28,408       52,979    60,316 

Net earnings                $11,354   $12,187     $ 28,780  $ 29,648

</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
                                   
<PAGE>
                   UNIMAR COMPANY AND SUBSIDIARIES

                Condensed Consolidated Balance Sheets
                        (Thousands of dollars)


                                              June 30,    December 31,
                                                1997         1996  
                                            (Unaudited)
ASSETS
Current assets:
  Cash and cash equivalents                 $   5,156    $   3,274
  Accounts receivable                           6,998       13,943
  Inventories                                   8,092        8,177
  Other current assets                          3,020        2,951

    Total current assets                       23,266       28,345

Property, plant and equipment, at cost:
  Oil and gas properties
    (successful efforts method)             1,083,479    1,070,819
  Other                                         2,306        2,287

                                            1,085,785    1,073,106
  Less:  accumulated depreciation and
    depletion                                 742,613      720,976
  Net property, plant and equipment           343,172      352,130

Other assets                                    2,531        3,002

                                            $ 368,969    $ 383,477


LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
  Accounts payable                          $     463    $   1,043
  Advances from joint venture partners          1,602        1,234
  Accrued liabilities                          15,293       17,892
  Income and other taxes                       11,287       19,924
    Total current liabilities                  28,645       40,093

Deferred income taxes                         150,224      154,087
Other liabilities                              15,173       14,859

Partners' capital                             254,927      254,438
  Less:  demand notes receivable               80,000       80,000
                                              174,927      174,438

                                            $ 368,969    $ 383,477


See accompanying Notes to Condensed Consolidated Financial Statements.
<PAGE>
                   UNIMAR COMPANY AND SUBSIDIARIES

           Condensed Consolidated Statements of Cash Flows
                        (Thousands of dollars)
                             (Unaudited)



                                                  Six Months Ended
                                                       June 30,   
                                                   1997       1996  
                                                           

Net earnings                                     $ 28,780   $ 29,648
Adjustments to reconcile to net cash
 provided by operating activities:
   Depletion, depreciation and amortization        21,637     23,841
   Deferred income taxes                           (3,863)    (3,752)
   Changes in working capital and other            (3,961)    (2,397)

Net cash provided by operating activities          42,593     47,340 

Investment activities:
   Capital expenditures                           (12,679)   (10,832)

Net cash used in investing activities             (12,679)   (10,832)

Financing activities:
   Capital contributions                           11,200     12,940
   Capital distributions                          (39,600)   (47,840)

Net cash used in financing activities             (28,400)   (34,900)

Increase (decrease) in advances from joint 
 venture partners                                     368     (1,829) 


Net increase (decrease) in cash and cash            1,882       (221)
 equivalents

Cash and cash equivalents at beginning
 of period                                          3,274      4,882 

Cash and cash equivalents at end of period       $  5,156   $  4,661

IPU distributions paid                           $ 14,336   $ 11,641

Income taxes paid                                $ 65,479   $ 62,984




See accompanying Notes to Condensed Consolidated Financial Statements.

<PAGE>
                 UNIMAR COMPANY AND SUBSIDIARIES

       Notes to Condensed Consolidated Financial Statements
                          June 30, 1997
                           (Unaudited)


(1)   Unimar Company (the Company) is a general partnership
      organized under the Texas Uniform Partnership Act, whose
      partners are Unistar, Inc., a Delaware corporation and a
      direct subsidiary of Union Texas Petroleum Holdings, Inc., a
      Delaware corporation, and LASMO (Ustar) Inc., a Delaware
      corporation and an indirect wholly-owned subsidiary of LASMO
      plc, a public limited company organized under the laws of
      England.  Each partner shares equally in the Company's net
      earnings, distributions and capital contributions.

(2)   These condensed consolidated financial statements should be
      read in the context of the consolidated financial statements
      and notes thereto included in the Company's 1996 annual report
      on Form 10-K.  In the opinion of management, the accompanying
      financial statements contain all adjustments of a normal
      recurring nature necessary for a fair presentation.  Interim
      results are not necessarily indicative of results on an
      annualized basis.

 The preparation of financial statements in conformity with generally 
accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets 
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period.  Actual results could differ from those
  estimates.
<PAGE>
                 UNIMAR COMPANY AND SUBSIDIARIES

 Notes to Condensed Consolidated Financial Statements, Continued
                          June 30, 1997
                           (Unaudited)


(3)   The table below outlines the calculation of the Indonesian
      Participating Unit (IPU) participation payment for the second
      quarter of 1997.

                                                   1997
                                               Second Quarter  
                                         (Thousands of dollars)
     
     Positive cash flow:
     
           Gas receipts                       $ 51,047
     
           Oil and condensate receipts           8,149
     
           Other non-revenue cash receipts
              from Joint Venture                   976
     
           Total positive cash flow             60,172
     
     Less negative cash flow:
     
           Expenditures to Joint Venture        13,535
     
           Indonesian income taxes              25,107
     
           Total negative cash flow             38,642
     
     Net positive cash flow from 
       23.125% interest in Joint Venture      $ 21,530
     
     Net cash flow for benefit of 
       IPU holders*                           $  5,282
     
     Participation Payment per IPU*           $    .49
     
     
          
     
        *  Each IPU is entitled to 1/14,077,747 of 32% of net positive
           cash flow until September 25, 1999 at which time the Units
           will expire with no residual value.  As of June 30, 1997,
           there were 10,778,590 IPUs issued and outstanding.

<PAGE>
     The following discussion should be read in conjunction with the
business section, consolidated financial statements, notes, and
management's discussion contained in the Company's 1996 annual
report on Form 10-K, and condensed consolidated financial
statements and notes contained in this report.


Liquidity and Capital Resources

     Cash flow from operations for the six months ended June 30, 1997
amounted to $43 million, a decrease of $5 million as compared to
the same period in 1996.  The decrease resulted primarily from
lower sales volumes which were partially offset by higher  prices. 
Capital expenditures and net distributions to the partners for the
first six months of 1997 were $13 million and $28 million,
respectively.  For the six months ended June 30, 1996, capital
expenditures and net distributions to the partners were $11 million
and $35 million, respectively.

     The Company's share of 1997 Indonesian Joint Venture (IJV)
expenditures is currently expected to approximate $55 million, a $3
million increase from the amount projected at year-end 1996.  The
increase includes a $6 million increase in operating expenditures
associated primarily with the Operator's business process
reengineering plan, offset by a $3 million decrease in exploration
expenditures as a result of reductions in planned exploratory
seismic and drilling activity for 1997.  During the first six
months of 1997, $27 million was called by the IJV as compared to
$25 million for the six months ended June 30, 1996.

     The Company's ability to generate cash is primarily dependent on
the prices it receives for the sale of liquefied natural gas (LNG),
and to a lesser extent, the sale of crude oil and liquefied
petroleum gas (LPG).  LNG and LPG are primarily sold under long
term contracts whose prices are indexed by a basket of Indonesian
crudes.  In the event cash generated from operations is not
sufficient to meet capital investment and other requirements, any
shortfall will be funded through additional cash contributions by
the partners.  The Company cannot predict with any degree of
certainty the prices it will receive in future periods for its
crude oil, LNG and LPG.  The Company's financial condition,
operating results and liquidity will be materially affected by any
significant fluctuations in its sales prices.

<PAGE>
Results of Operations

                  Quarter Ended June 30, 1997
            Compared to Quarter Ended June 30, 1996

     Net earnings for the second quarter of 1997 were $11 million, as
compared to $12 million in the prior year's quarter.  The decrease
in earnings was mainly due to lower revenues as discussed below.

     Second quarter 1997 revenues were $50 million, a decrease of $8
million as compared to the corresponding 1996 quarter.  The
decrease was mainly due to a 17 percent decrease in LNG sales
volumes which was partially offset by a 27 percent increase in
crude oil sales volumes.  Prices for LNG sales increased 2 percent 
and crude oil sales prices decreased slightly.

     The IJV's share of LNG sold during the second quarter of 1997 was
83 trillion BTUs (28.1 net equivalent cargoes) as compared to 100
trillion BTUs (33.8 net equivalent cargoes) in the second quarter
of 1996. The IJV's share of LNG shipments for 1997 is expected to
decline by approximately 15 percent as compared to 1996, due
primarily to the reduction in deliveries under the IJV's first
contract in which the IJV has a higher participation interest.  A
further decline in LNG shipments is expected in 1998.

     Crude oil volumes net to the Company increased by 88 thousand
barrels to 411 thousand barrels, mainly due to the timing of crude
oil liftings.

     The average price received for LNG during the second quarter of
1997 was $3.05 per million BTUs, a $0.05 per million BTU increase
as compared to the same period in 1996.  The average crude oil
price in the second quarter of 1997 was $18.88 per barrel, a $0.03
per barrel decrease as compared to the corresponding 1996 quarter.

     Production costs for the second quarter of 1997 increased by 
approximately $0.5 million as compared to the same quarter in 1996
due primarily to recoverable costs associated with the Operator's
ongoing business process reengineering plan.
 
     Depletion, depreciation and amortization charges decreased $1
million to $10 million, due to the lower overall level of
production in the second quarter of 1997 as compared to the second
quarter of 1996.

     Income tax expense in the second quarter of 1997 decreased $6
million to $22 million, due primarily to lower second quarter
revenues and an increase in cost recoverable expenditures.  The
effective tax rates for the 1997 and 1996 second quarters were 66
percent and 70 percent, respectively.  These rates are the
aggregate of Indonesian source income taxed at a 56 percent rate,
and certain expenses attributable to the Company which are not
deductible in the partnership.


                 Six months Ended June 30, 1997
           Compared to Six months Ended June 30, 1996

     Net earnings for the first six months of 1997 were $29 million, 
a decrease of $1 million as compared to the same period in 1996. 
The decrease in earnings was mainly the result of lower revenues as
discussed below.

     Revenues for the first six months of 1997 were $116 million, or
$10 million lower than the first six months of 1996.  Although LNG
and crude oil sales prices increased 12 percent and 8 percent,
respectively, volumes of LNG and crude oil sales decreased 18
percent and 6 percent, respectively.

     The average price received for LNG was $3.33 per million BTUs,
a $0.35 per million BTU increase as compared to the first six
months of 1996.  The price  received for crude oil sales averaged
$20.44 per barrel, an increase of $1.60 per barrel as compared to
the 1996 six month average.

     The IJV's share of LNG sold during the first six months of 1997
was 174 trillion BTUs (59.1 net equivalent cargoes) as compared to
213 trillion BTUs (72.4 net equivalent cargoes) in the first six
months of 1996. The IJV's share of LNG shipments for 1997 is
expected to decline by approximately 15 percent as compared to
1996, due primarily to the reduction in deliveries under the IJV's
first contract in which the IJV has a higher participation
interest.  A further decline in LNG shipments is expected in 1998.

     Crude oil volumes net to the Company decreased by 48 thousand
barrels to 821 thousand barrels, mainly due to the timing of crude
oil liftings.

     Production costs for the first six months of 1997 increased by 
approximately $0.5 million as compared to the same period in 1996
due primarily to recoverable costs associated with the Operator's
ongoing business process reengineering plan.

     Depletion, depreciation and amortization charges decreased $2 
million to $22 million, mainly due to the lower overall level of
production in the first six months of 1997.

     Income taxes in the first six months of 1997 decreased $7 million
to $53 million.  The decrease in current tax expense during the
first six months of 1997 was primarily due to lower revenues and an
increase in cost recoverable expenditures.  The effective tax rates
for the first six months of 1997 and 1996 were 65 percent and 67
percent, respectively.  These rates are the aggregate of Indonesian
source income taxed at a 56 percent rate, and certain expenses
attributable to Unimar activities which are not deductible in the
partnership.<PAGE>
PART II.  OTHER INFORMATION


Item 5. Other Information

        None.

Item 6. Exhibits and Reports on Form 8-K

        (a)  Exhibits

        (10)-1-  Amendment No. 2 to Amended and Restated Bontang
                 Excess Sales Trustee and Paying Agent Agreement,
                 dated as of March 4, 1997, among BankAmerica
                 International, as Trustee, and the Producers.

        (10)-2-  Bontang VI Disbursement Trustee and Paying Agent
                 Agreement dated as of March 19, 1997, between
                 Bank of America National Trust and Savings
                 Association, as Bontang VI Trustee, and Bank of
                 America National Trust and Savings Association,
                 as Disbursement Trustee.

        (27)-1-  Financial Data Schedule for the six months ended
                 June 30, 1997.

        (b)  Reports on Form 8-K

             None.

<PAGE>
                         UNIMAR COMPANY
                                
                           SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.


                               UNIMAR COMPANY




                               By:   /S/ George W. Berko         
                                    George W. Berko
                                    Member of the Management
                                    Board
                                    (principal financial officer
                                    and the officer duly authorized to sign 
                                    on behalf of the registrant.)


DATE: August 13, 1997