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ULTRAMAR CANADA INC. ENTERS 18-MONTH AGREEMENT TO PROCESS STATOIL NORTH AMERICA INC.'S CRUDE OIL

 TARRYTOWN, N.Y., Feb. 12 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) announced today that its wholly-owned subsidiary, Ultramar Canada Inc., has entered into an 18-month processing agreement with Statoil North America Inc., a wholly-owned subsidiary of the Norwegian National Oil Company, under which Ultramar's two Canadian refineries will process approximately 22,000 barrels per day of crude oil for Statoil, beginning Feb. 16, 1993.
 Most of the refined product manufactured under this processing agreement will be produced at Ultramar's Halifax Refinery for the export market. The portion of Ultramar's market demand that had been supplied by the Halifax Refinery will now be supplied out of Ultramar's Quebec Refinery.
 This processing agreement will benefit the company by enabling it to reduce working capital requirements and to utilize the Quebec Refinery, which has a low incremental cost of manufacturing, at higher rates. As reported in October 1992, the company is increasing the Quebec Refinery's crude oil processing capacity to 140,000 barrels per day at a cost of only US$7 million. The company has already included the benefits to be derived from this processing agreement as part of its previously announced $35 million overall cost reduction program.
 "This processing agreement enables Ultramar to utilize its refinery assets more efficiently," said Jean Gaulin, Ultramar's chief executive officer. "We can take full advantage of our refinery location in Halifax, which is well suited for the export market, and also supply our customers in Eastern Canada through our low cost, highly efficient Quebec Refinery. These are important advantages in today's difficult economic climate and fiercely competitive marketplace."
 -0- 2/12/93
 /CONTACT: Steve Blank of Ultramar Corporation, 914-333-2019, or Louis Forget of Ultramar Canada, 514-499-6442; or Lissa Perlman of Kekst and Company, 212-593-2655, for Ultramar/
 (ULR)


CO: Ultramar Canada Inc. ST: New York IN: OIL SU:

WB-TM -- NY055 -- 6328 02/12/93 17:32 EST
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Publication:PR Newswire
Date:Feb 12, 1993
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