UNIMAR COMPANY

                             TABLE OF CONTENTS

                                                       
               
PART I.  FINANCIAL INFORMATION
               
  Item 1.  Financial Statements

           Condensed Consolidated Statements of Earnings
             For the Three Months and Nine Months ended
             September 30, 1996 and September 30, 1995  . . 1
    
           Condensed Consolidated Balance Sheets as of
             September 30, 1996 and December 31, 1995 . . . 2

           Condensed Consolidated Statements of 
             Cash Flows for the Nine Months ended
             September 30, 1996 and September 30, 1995. . . 3

           Notes to Condensed Consolidated Financial 
             Statements as of September 30, 1996. . . . . . 4
           

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


PART II.  OTHER INFORMATION

  Item 5.  Other Information. . . . . . . . . . . . . . . . 9

  Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . 9


SIGNATURES  . . . . . . . . . . . . . . . . . . . . . . . . 9
                                   <PAGE>
<TABLE>
                                PART I.   FINANCIAL INFORMATION
                                UNIMAR COMPANY AND SUBSIDIARIES

                         Condensed Consolidated Statements of Earnings
                                     (Thousands of dollars)
                                          (Unaudited)


<CAPTION>                          Three Months Ended        Nine Months Ended
                                      September 30,            September 30,  
                                    1996      1995            1996       1995   
                                           
<S>                           <C>       <C>             <C>          <C>
Oil and gas production 
revenues                      $62,693   $43,734         $188,904     $157,534

Production costs                5,762     5,884           17,644      18,130  

Depletion, depreciation and 
     amortization              12,180     9,566           35,884      32,274 

Exploration costs including 
     dry holes                  1,213        29          1,460            10


Operating profit               43,538    28,255         133,916      107,120

General and administrative 
     expenses                     559       409           1,128        1,064
Other income                      (70)     (112)           (225)        (333)

Earnings before income taxes   43,049    27,958         133,013      106,389


Income tax expense
   Current                     32,806    21,040     96,874            76,378 
   Deferred                    (1,219)   (1,378)    (4,971)           (3,479)
     
                               31,587    19,662     91,903            72,899 

Net earnings                  $11,462   $ 8,296   $ 41,110          $ 33,490


See accompanying Notes to Condensed Consolidated Financial Statements.

</TABLE>   
                                     <PAGE>

                    UNIMAR COMPANY AND SUBSIDIARIES
                 Condensed Consolidated Balance Sheets
                        (Thousands of dollars)
                                   

                                          September 30,   December 31,
                                             1996           1995     
                                          (Unaudited)

ASSETS
Current assets:                             
  Cash and cash equivalents                 $   6,309       $   4,882
  Accounts and notes receivable                14,915           7,415
  Inventories                                   8,519           9,839
  Other current assets                          2,440           3,372

     Total current assets                      32,183          25,508

Property, plant and equipment, at cost:
  Oil and gas properties
   (successful efforts method)              1,064,177       1,049,708
  Other                                         2,280           2,264

                                            1,066,457       1,051,972
  Less:  accumulated depreciation and
   depletion                                  709,640         673,543
  Net property, plant and equipment           356,817         378,429

Other assets                                    3,492           3,277

                                            $ 392,492       $ 407,214


LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
  Accounts payable                          $   4,097       $   2,394
  Advances from joint venture partners            791           2,777
  Accrued liabilities                          14,297          14,595
  Income taxes                                 15,199          11,697
    Total current liabilities                  34,384          31,463

Deferred income taxes                         153,393         158,364
Other liabilities                              13,239          12,321

Partners' capital                             271,476         285,066
  Less:  demand notes receivable               80,000          80,000
         191,476                              205,066

                                            $ 392,492       $ 407,214

See accompanying Notes to Condensed Consolidated Financial Statements.

<PAGE>
 
                   UNIMAR COMPANY AND SUBSIDIARIES

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

        Nine Months Ended
         September 30,   
        1996       1995  
                

Net earnings                                      $ 41,110   $ 33,490
Adjustments to reconcile to net cash
  provided by operating activities:
    Depletion, depreciation and amortization        36,098     32,519
    Deferred income taxes                           (4,971)    (3,479)
    Exploratory dry hole costs                           -        (22)
    Changes in working capital and other               364     (5,261)

Net cash provided by operating activities           72,601     57,247 

Investment activities:
    Capital expenditures                           (14,488)   (17,886)

Net cash used in investing activities              (14,488)   (17,886)

Financing activities:
    Capital contributions                           17,400     30,400
    Capital distributions                          (72,100)   (69,000)

Net cash used in financing activities              (54,700)   (38,600)

Increase (Decrease) in advances from joint 
  venture partners                                  (1,986)      (136) 


Increase (Decrease) in cash and cash equivalents     1,427        625

Cash and cash equivalents 
  at beginning of period                             4,882      3,421 

Cash and cash equivalents at end of period        $  6,309   $  4,046

IPU distributions paid                            $ 17,354   $ 15,306

Income taxes paid                                 $ 93,372   $ 76,603




See accompanying Notes to Condensed Consolidated Financial Statements.

<PAGE>
  

               UNIMAR COMPANY AND SUBSIDIARIES

       Notes to Condensed Consolidated Financial Statements
                        September 30, 1996
                           (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 1995 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 
gent 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 est

 Notes to Condensed Consolidated Financial Statements, Continued
                        September 30, 1996
                           (Unaudited)


(3)    The table below outlines the calculation of the Indonesian
       Participating Unit (IPU) participation payment for the third
       quarter of 1996.

                                                     1996
                                                 Third Quarter   
                                             (Thousands of dollars)
     
     Positive cash flow:
     
       Gas receipts                          $ 59,738
     
       Oil and condensate receipts              7,368
     
       Other non-revenue cash receipts
           from Joint Venture                   1,056
                 Total positive cash flow      68,162
     
     Less negative cash flow:
     
       Expenditures to Joint Venture           11,884
     
       Indonesian income taxes                 30,252
     
                 Total negative cash flow      42,136
     
     Net positive cash flow from 
       23.125% interest in Joint Venture     $ 26,026
     
     Net cash flow for benefit of 
       IPU holders*                          $  6,359
     
     Participation Payment per IPU*          $    .59
     
     
     
     
     
        * 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 September 30, 1996,
          there were 10,778,590 IPUs issued and outstanding.

<PAGE>
                 UNIMAR COMPANY AND SUBSIDIARIES

             Management's Discussion and Analysis of
          Financial Condition and Results of Operations


     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 1995 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 nine months ended September
30, 1996 amounted to $73 million, an increase of $16 million as
compared to the same period in 1995.  The increase resulted
primarily from higher sales prices and higher LNG sales volumes. 
Capital expenditures and net distributions to the partners for the
first nine months of 1996 were $14 million and $55 million,
respectively.  For the nine months ended September 30, 1995,
capital expenditures and net distributions to the partners were $18
million and $39 million, respectively.

     The Company's share of the 1996 Indonesian Joint Venture (IJV)
expenditures is now expected to be approximately $42 million of
which $22 million is anticipated for exploration and development
activities.  During the first nine months of 1996, $33 million was
called by the IJV as compared to $36 million for the nine months
ended September 30, 1995.

     The Company's ability to generate cash is primarily dependent
on the prices it receives for the sale of LNG, and to a lesser
extent, the sale of crude oil and 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 and LNG.  The Company's financial condition,
operating results and liquidity will be materially affected by any
significant fluctuations in its sales prices.<PAGE>

                UNIMAR COMPANY AND SUBSIDIARIES

             Management's Discussion and Analysis of
          Financial Condition and Results of Operations


Results of Operations

                Quarter Ended September 30, 1996
          Compared to Quarter Ended September 30, 1995

     Net earnings for the third quarter of 1996 were $11 million, 
as compared to $8 million in the prior year's third quarter.  The
increase in earnings was mainly due to higher revenues as discussed
below.

     Third quarter 1996 revenues were $63 million, an increase of
$19 million over the corresponding 1995 quarter.  LNG and crude oil
sales prices increased 21 percent and 24 percent, respectively,
while LNG and crude oil sales volumes increased 17 percent and 18
percent, respectively.

     The average price received for LNG during the third quarter of
1996 was $3.09 per million BTUs as compared to $2.55 for the same
period in 1995.  The average crude oil price in the third quarter
of 1996 increased by $3.88 per barrel over the corresponding 1995
quarter, to $20.25 per barrel.

     Gross LNG sales volumes increased 22 percent to 187 trillion 
BTUs in the third quarter of 1996, as compared to 153 trillion BTUs
in the third quarter of 1995.  The IJV's share of the LNG sold
increased 17 percent to 105 trillion BTUs (35.7 net equivalent
cargoes) from 90 trillion BTUs (30.6 net equivalent cargoes).  The
IJV's share of volumes increased by a smaller percentage than the
gross volumes because more sales were under those contracts in
which the IJV has a lower net revenue sharing interest.

     Crude oil volumes net to the Company increased by 76 thousand
barrels to 500 thousand barrels, due primarily to the timing of
crude oil liftings.

     Depletion, depreciation and amortization charges increased $2
million to $12 million, mainly due to the increased level of
production in the third quarter of 1996 as compared to the third
quarter of 1995.

     Exploration costs of $1 million during the third quarter of
1996 were due to planned seismic activities.

     Indonesian income tax expense in the third quarter of 1996
increased $12 million to $32 million.  The increase in current
income tax expense during the 1996 third quarter was primarily due <PAGE>

                   UNIMAR COMPANY AND SUBSIDIARIES
                                
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations


to higher third quarter revenues.  The effective tax rates for the
1996 and 1995 third quarters were 73 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 Unimar activities which are not deductible in the
partnership.


              Nine Months Ended September 30, 1996
        Compared to Nine Months Ended September 30, 1995

     Net earnings for the first nine months of 1996 were $41
million,  an increase of $8 million over the same period in 1995. 
The increase in earnings was mainly the result of higher revenues
as discussed below.

     Revenues for the first nine months of 1996 were $189 million,
or $31 million higher than the first nine months of 1995.  LNG and
crude oil sales prices increased 11 percent and 12 percent,
respectively, while LNG and crude oil sales volumes increased 7
percent and 5 percent, respectively.

     The average price received for LNG was $3.01 per million BTUs,
as compared to $2.70 for the first nine months of 1995.  The price 
received for crude oil sales averaged $19.36 per barrel, an
increase of $2.10 per barrel from the 1995 nine month average.  The
prices received by the Company for its products reflected higher
worldwide crude oil prices during the first nine months of 1996 as
compared to the first nine months of 1995.

     Gross LNG sales volumes increased 9 percent to 582 trillion 
BTUs in the first nine months of 1996, as compared to 536 trillion
BTUs in the first nine months of 1995.  The IJV's share of the LNG
sold increased 7 percent to 318 trillion BTUs (108.1 net equivalent
cargoes) from 298 trillion BTUs (101.2 net equivalent cargoes). 
The IJV's share of volumes increased by a smaller percentage than
the gross volumes because more sales were under those contracts in
which the IJV has a lower net revenue sharing interest.

     Crude oil volumes net to the Company increased by 71 thousand
barrels to 1,369 thousand barrels for the nine months of 1996.

     Exploration costs were $1 million, reflecting planned seismic
activities in the current year.
  
     Depletion, depreciation and amortization charges increased $4 

                UNIMAR COMPANY AND SUBSIDIARIES
                                
             Management's Discussion and Analysis of
          Financial Condition and Results of Operations


million to $36 million, mainly due to the increased level of
production in the first nine months of 1996.

     Income taxes in the first nine months of 1996 increased $19
million to $92 million.  The increase in current tax expense during
the first nine months of 1996 was primarily due to higher revenues. 
The effective tax rate for both the 1996 and 1995 periods was 69
percent.  This rate is 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

        (27)-1-  Financial Data Schedule for the nine months 
                 ended September 30, 1996.

        (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: November 11, 1996