European Commission approves BP Amoco-ARCO deal

Petroleum News Alaska Staff

The Competition Directorate of the European Commission gave its approval Sept. 29 to the proposed combination between BP Amoco and ARCO on condition that the companies dispose of certain ARCO gas infrastructure assets in the United Kingdom southern North Sea. BP Amoco and ARCO have indicated their agreement to do so.

Sir John Browne, BP Amoco group chief executive, said: “The Commission’s approval is a significant further step in our progress towards a successful completion of the combination with ARCO.

“In the past few weeks, shareholders of both companies have given overwhelming support to the proposal. We continue our constructive dialogue with the U.S. authorities and remain confident that we can meet our target of completion of the deal before the end of the year.”

The assets which the European Commission has required be disposed are ARCO’s share in the Thames, the Hewett and the Caister-Murdoch pipelines as well as ARCO’s share in the gas processing terminal at Bacton.