ARCO exploring pipeline sale

Petroleum News Alaska

ARCO said Feb. 11 that it is conducting a search for a suitable buyer for elements of its Midcontinent pipeline operations, ARCO Pipe Line Co. Any transaction, the company said, would be contingent on completion of ARCO’s proposed combination with BP Amoco.

In the U.S. Federal Trade Commission’s review of BP Amoco’s proposed acquisition of ARCO, the agency raised concerns about possible effects of combining certain assets of ARCO and BP Amoco in the Cushing, Okla., area. The FTC included the Cushing concerns in its U.S. District Court filing challenging the combination. ARCO said that it does not consider the FTC concerns to be valid, but is exploring the potential sale to address those concerns.

ARCO’s Midcontinent interests include crude and products pipelines from the Gulf Coast to Cushing, Midcontinent crude trading services, petrochemicals pipeline systems and various non-operated joint interest activities.