acquire Union Texas Petroleum Holdings Incorporated, an independent oil company based in Houston, Texas, for $2.47 billion. The acquisition will add to ARCO's oil and natural gas production and increase ARCO's total oil and gas reserves by 14 percent. The deal also helps ARCO enter the Caspian Sea region, with ARCO gaining a 12.5 percent interest in the Caspian Pipeline Consortium and a 5 percent interest in Kazakhstan's Tengiz oil filed. ARCO also will gain additional interests in projects located in the United Kingdom, Indonesia, Alaska, and Venezuela. (NYT) (WSJ) May 11: India announces that it has conducted three underground nuclear tests, the country's first since 1974. The tests were conducted simultaneously southwest of New Delhi, near the Pakistani border. The Indian government indicates that the three tests included a thermonuclear device, commonly known as a hydrogen bomb. Two days later, on May 13, 1998, India announces that it has conducted two more underground nuclear tests in the same desert range. (WP) (DJ) June 19: The United Nations (U.N.) Security Council unanimously approves a resolution allowing Iraq to spend $300 million on spare parts for its oil industry. The funding is intended to help Iraq increase oil exports under the fourth phase of the U.N.'s oil-for-food program. The spare parts are expected to expand Iraq's oil export capacity from to or . (NYT) (DJ) June 24: OPEC agrees, at its 105th ministerial conference, to another round of oil production cuts. In recent weeks oil prices have fallen to their lowest levels in more than a decade. OPEC members have agreed to cut production by , effective July 1, 1998, bringing the group's total reductions since March 1998 to . Together with promises from non-OPEC nations such as Russia, Oman, and Mexico, world oil producers have pledged to cut worldwide production by approximately . (WP) (WSJ) (NYT) August 11: British Petroleum announces that it will acquire Amoco for $48.2 billion in stock. If the merger is approved by regulators and shareholders of both companies, it will be the largest oil industry merger and the largest foreign take-over of a U.S. company to date. The company will be known as BP Amoco, and it will be the world's third-largest multinational oil company in terms of net income behind Exxon and Royal Dutch/Shell Group. (NYT) (WSJ) (WP) October 1: South Korea's oil refining sector fully deregulates, allowing for 100 percent foreign investment. Originally,