8-K

                    SECURITIES AND EXCHANGE COMMISSION

                          Washington, D. C. 20549


                                  FORM 8-K

                               CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934


Date of Report:  January 30, 1997
Date of earliest event reported:  January 30, 1997


                                ASHLAND INC.
  (Exact name of registrant as specified in its charter)


                                  Kentucky
               (State or other jurisdiction of incorporation)

       1-2918                                        61--0122250
(Commission File Number)                           (I.R.S. Employer
                                                    Identification No.)


1000 Ashland Drive, Russell, Kentucky                    41169
(Address of principal executive offices)               (Zip Code)


P.O. Box 391, Ashland, Kentucky                          41114
     (Mailing Address)                                 (Zip Code)


Registrant's telephone number, including area code (606) 329-3333






Item 5.  Other Events

     On January 30, 1997, the Board of Directors of Ashland Inc.  announced
that Ashland will proceed toward an initial public offering of less than 20
percent of Ashland Exploration, Inc., a wholly-owned subsidiary, subject to
certain  contingencies.  This  transaction  would  likely occur in the late
spring or summer.  The initial public  offering would likely be followed by
the  tax-free  spin  off  of  Ashland's   remaining  ownership  in  Ashland
Exploration  to Ashland Inc.  shareholders  once an  appropriate  ruling is
received from the Internal Revenue Service.
     
     The foregoing  summary of the attached  press  release is qualified in
its  entirety by the  complete  text of such  document,  a copy of which is
attached hereto.

Item 7. Financial  Statements and Exhibits
     (c) Exhibits
          99  Press Release




                                 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.



                                                  ASHLAND INC.
                                        -----------------------------------
                                                  (Registrant)



Date:  January 30, 1997                    /s/ James G. Stephenson
                                        -----------------------------------
                                        Name:    James G. Stephenson
                                        Title:   Vice President - Law




                              Exhibit Index

Exhibit No.                                                 Page No.

    99   Press Release of Ashland Inc.                         5
         dated January 30, 1997

EX-99

                                             FOR FURTHER INFORMATION:

                                             Stan Lampe
                                             606-329-4061

                                             FOR IMMEDIATE RELEASE
                                             January 30, 1997

Ashland Inc. board approves initial public
offering/spin-off for Ashland Exploration

     Ashland,  Ky. --  Ashland  Inc.  (NYSE:  ASH) will  proceed  toward an
initial  public  offering  for Ashland  Exploration  Inc.,  a  wholly-owned
subsidiary,  according to Paul W.  Chellgren,  chairman and chief executive
officer.  

     The  Ashland  Inc.  Board of  Directors  approved,  subject to certain
contingencies,  the  initital  public  offering  of less than 20 percent of
Ashland Exploration. This transaction would likely occur in the late spring
or summer.  The initial  public  offering  would  likely be followed by the
tax-free spin-off of Ashland's  remaining  ownership in Ashland Exploration
to Ashland Inc.  shareholders  once an appropriate  ruling is received from
the Internal Revenue Service.

     "Ashland Exploration is well positioned to grow its core operations in
the  Appalachian  Basin,  the Gulf of  Mexico  and  Nigeria.  Total  proved
reserves  at  September  30,  1996,  were 577 BCF of  natural  gas and 21.5
million  barrels of crude oil,"  Chellgren  said. "We hope to complete both
transactions  before  the  end  of  the  1997  calendar  year,  subject  to
governmental and regulatory approvals,  tax rulings,  market conditions and
definitive agreements among various parties."

     Ashland  Exploration  is a  domestic  and  international  producer  of
natural  gas and crude  oil.  The  division  is  currently  engaged  in the
exploration  for and  production of crude oil and natural gas in the United
States and in the exploration for and production of crude oil in Nigeria.

     Ashland  Inc.  is a large  energy  and  chemical  company  engaged  in
petroleum refining and marketing;  coal; highway construction;  and oil and
gas exploration and production. Ashland Chemical is the largest distributor
of  chemicals  and  plastics  in North  America  and a leading  supplier of
specialty  chemicals  worldwide.  Ashland's  major consumer  brands include
Valvoline(R)  motor oils,  Zerex(R)  antifreeze  and Pyroil(R)  Performance
Products automotive  chemicals.  As one of the largest independent refiners
in the nation,  Ashland is also a leading regional gasoline marketer,  with
products  marketed under the  SuperAmerica(R)  and Ashland(R)  brand names.
Ashland Inc.'s internet address is http://www.ashland.com

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