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:  December 12, 1997
    Date of earliest event reported:  December 12, 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  December  12,  1997,  the  Registrant  issued a press  release
    announcing  definitive  agreements had been signed on December 12, 1997
    that will formally create Marathon Ashland  Petroleum LLC. Marathon has
    a 62 percent  interest  and  Ashland a 38 percent  interest  in the new
    company which is expected to commence operations on January 1, 1998.
         Plans to purse the joint venture were first  announced last May 15
    when a letter of intent to seek a combination  of the major elements of
    the two firms'  downstream  operations  was signed.  The Federal  Trade
    Commission  has  advised  both  companies  that  it has  completed  the
    antitrust review of their refining and marketing joint venture and will
    permit the transaction to proceed.
         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:  December 12, 1997            /s/  Thomas L. Feazell    
                                     ----------------------------------
                                     Name:     Thomas L. Feazell
                                     Title:    Senior Vice President, General
                                               Counsel and Secretary





                               Exhibit Index

  Exhibit No.
  -----------

     99                   Press Release of Ashland Inc. dated December 12, 1997


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                                   FOR FURTHER INFORMATION:

                                   USX                       Ashland Inc.
                                   William E. Keslar         Dan Lacy
                                   (412) 433-6870            (606) 329-3148 

                                   December 12, 1997

DEFINITIVE AGREEMENTS SIGNED FOR
MARATHON, ASHLAND JOINT VENTURE

Findlay,  OH,  Dec. 12 -- Thomas J.  Usher,  chairman  of USX  Corporation,
Victor G.  Beghini,  president  of  Marathon  Oil,  and Paul W.  Chellgren,
Ashland chairman and chief executive officer,  signed definitive agreements
today that will formally create Marathon  Ashland  Petroleum LLC.  Marathon
has a 62 percent  interest  and  Ashland a 38 percent  interest  in the new
company which is expected to commence operations Jan. 1, 1998.
         Plans to pursue the joint venture were first announced last May 15
when a letter of intent to seek a combination  of the major elements of the
two firms'  downstream  operations was signed.  As announced on Dec. 8, the
Federal Trade  Commission  has advised both companies that it has completed
the  antitrust  review  of  their  refining  and  marketing  joint  venture
announced earlier this year, and will permit the transaction to proceed.
         Potential  efficiencies  to be derived by the joint  venture  have
been  broadly  estimated  to be in excess  of $200  million  annually  on a
pre-tax basis.  While a modest part of these  efficiencies will begin to be
achieved in mid- to late 1998,  realization  of  efficiencies  should occur
over the next  few  years as the  joint  venture's  integration  plans  are
implemented.   Certain   transition   costs,   principally   severance  and
relocation,  will be  incurred  by both  parents  in  connection  with  the
formation  of the  new  company;  however,  these  one-time  costs  are not
expected  to  be  significant,   nor  are  any  major  asset   dispositions
anticipated in connection with the combination at this time.
         "Today's   signing   represents  the   culmination  of  months  of
comprehensive  planning and discussion and reflects the efforts of hundreds
of dedicated Marathon,  USX and Ashland employees.  More importantly,  this
signing represents the creation of a new company, one well-

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suited to the demands of a changing market," Usher stated. "The prospect of
combining  complementary  assets and  integrating  marketing and operations
strengths through Marathon Ashland Petroleum LLC is extremely  exciting.  I
expect the joint venture to be a formidable competitor."
         "We're  very  pleased  that the  definitive  agreements  have been
signed," said  Chellgren.  "Marathon,  USX and Ashland  employees are to be
commended for the hard work,  dedication and  aggressive  pace that they've
maintained  toward  building  one of the  strongest  and  most  competitive
downstream  companies  in  the  industry.   It's  our  goal  to  close  the
transaction as near to year-end as possible and integrate the operations of
the two companies as soon as possible."
         J. L. "Corky"  Frank,  Marathon's  executive  vice  president  for
refining,  marketing  and  transportation,  will be  president of the joint
venture  and  D.  Duane  Gilliam,  Ashland  Petroleum  president,  will  be
executive  vice  president.  Other  officers of the joint venture from both
companies  have also been  announced.  Headquarters  for  Marathon  Ashland
Petroleum will be located in Findlay, Ohio.
         "This signing combines the downstream resources of two outstanding
parent  companies in an exciting  growth-oriented  venture," Frank said. "I
see the  potential  for  significantly  enhancing  the  value  provided  to
customers and other stakeholders  through the joint venture's  economies of
scale,  feedstock  purchasing,  market access, and  refining/transportation
flexibility.  But the most important  resource of all is our employees," he
emphasized. "Innovation and performance derives from people. Because of the
caliber of our people, I have no doubt that our performance will grow to be
best of class."
         Marathon and Ashland have agreed that exploration,  production and
chemical  businesses  are not to be part of the  joint  venture.  Ashland's
refinery-produced  petrochemicals  will be included  in the joint  venture.
Other exclusions include Ashland's Valvoline  division,  along with certain
Marathon equity investments in pipelines.
         Plans are to continue  employing the existing  brands that each of
the parent companies have utilized  successfully.  In the future, the joint
venture will develop a brand  strategy that will maximize the market impact
of the brand  offering.  Marathon  operates  under the  Marathon  brand and
through  its Emro  Marketing  Company  brands:  Speedway,  Bonded,  Cheker,
Starvin'  Marvin,  


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United,  Gastown,  Wake Up and Kwik Sak.  Ashland brands include:  Ashland,
SuperAmerica and Rich Oil.
         Marathon Ashland Petroleum LLC will have approximately six percent
of total U.S. refining capacity with seven plants located at Garyville, LA,
(255,000 b/d); Catlettsburg, KY, (220,000 b/d), Robinson, IL (180,000 b/d);
St. Paul Park, MN (70,000 b/d);  Texas City, TX (70,000 b/d);  Detroit,  MI
(70,000 b/d);  and Canton,  OH (70,000  b/d).  The new company will have 84
light products and asphalt  terminals in the Midwest and Southeast  regions
of the United  States,  5,400 retail  marketing  outlets in 20 states,  and
significant  pipeline  holdings.  On a pro forma basis, the joint venture's
combined total assets would have been roughly $7 billion at the end of 1996
and  reported  sales  revenues for 1996 would have been  approximately  $20
billion,  which  includes  approximately  $7  billion  of excise  taxes and
matching buy/sell transactions.
         Marathon  Oil  Company  is  a  part  of  the  USX-Marathon   Group
(NYSE:MRO),  a unit of USX Corporation.  Ashland Inc. (NYSE:ASH) is a large
energy and chemical  company  engaged in petroleum  refining and marketing;
coal and highway construction.

December 12, 1997

For more information on Marathon,  see the website at  www.marathon.com  or
www.usx.com.   For  more  information  on  Ashland,   see  the  website  at
www.ashland.com.

         This   press   release   includes   forward-looking    statements,
particularly  concerning the amount of savings from potential efficiencies.
These statements contain the words "expected," "potential," or "estimated,"
indicating that future outcomes are not known with certainty and subject to
risk factors.  Some factors that could potentially cause actual outcomes to
differ  materially  from  information  set  forth  in  the  forward-looking
statements  include;  unanticipated  costs to implement shared  technology,
difficulties  in  integrating  corporate  structures,  delays in leveraging
volume procurement  advantages or delays in personnel  rationalization.  In
addition,  in accordance  with the "safe harbor"  provisions of the Private
Securities Litigation Reform Act of 1995, USX has included in its Form 10-Q
for the period  ended  March 31,  1997,  meaningful  cautionary  statements
identifying  important factors, but not necessarily all factors, that could
cause  actual  results  to differ  materially  from  those set forth in the
forward-looking statements.

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