|
Mergers committee votes to notify FTC it favors Phillips’ purchase Governor calls Prudhoe Bay agreement positive step for future development, says consent decree meets state’s competition concerns Kristen Nelson PNA News Editor
Both the Legislature and the governor applauded the Federal Trade Commission’s decision allowing BP Amoco’s acquisition of ARCO to be finalized.
The Legislature’s Joint Special Committee on Mergers, however, only voted in favor of BP Amoco’s acquisition after word came that the FTC was requiring the divestiture of ARCO’s Alaska assets to Phillips Petroleum Co.
The Legislature’s Joint Special Committee on Mergers voted March 21 to notify the FTC that the committee approved the purchase of ARCO’s Alaska assets by Phillips Petroleum as a way to resolve Alaska concerns over the acquisition of ARCO by BP Amoco.
On Feb. 8, the committee had voted unanimously to oppose the merger “as not being in the best interests of Alaskans.”
Senator Rick Halford, chairman of the committee, said March 21: “The only step that remains is for the court to enter into a consent decree recognizing the Phillips purchase of ARCO Alaska assets and approving the BP/ARCO merger.”
“These latest developments satisfy all of the committee’s concerns aimed at retaining a major, vertically integrated oil producing competitor in Alaska,” said committee member Senate President Drue Pearce. “Though we understand that Alaska issues are not the only consideration before the FTC, we do hope that a consent decree is entered soon. This would herald an auspicious future for Alaska’s oil patch.”
End of long and painful regulatory oversight Gov. Tony Knowles said April 13 that he applauded the FTC’s issuance of a consent degree to finalize the BP Amoco acquisition of ARCO, including the transfer of ARCO’s Alaska assets to Phillips Petroleum Co. He also applauded the announcement by the Prudhoe Bay operators of the alignment of commercial interests in the field.
“There’s been good news to Alaska on two fronts today,” he said. “First, the consent degree has finally been approved so there are no more legal barriers to BP Amoco’s acquisition of ARCO, and the acquisition by Phillips of ARCO Alaska holdings can also move forward. This brings to an end a long and painful chapter of regulatory oversight of this matter and now Alaskans can get back to work.”
The governor also lauded the alignment of Prudhoe Bay interests. “That means,” he said, “a unity of interests toward developing the gas resources as well as continuing to maximize the production of oil. The fact that they have settled these private contracts between each other to everyone’s satisfaction means these issues won’t create further delay and lack of clarity.”
Competition was charter goal The governor said that the charter which the state signed with ARCO, BP and Phillips achieved several important goals. “We maintained viable competition on the North Slope; we achieved efficiencies so Alaska can remain competitive on the world oil market; and we have achieved a new level of corporate citizenship from North Slope producers.
“Alaska won on all three points and that’s good news for Alaskans and Alaska jobs,” the governor said.
The charter agreement which the state reached with the companies required partial divestiture of ARCO’s Alaska holdings to one or two new operating companies, to ensure competition on the North Slope. Divestiture of ARCO’s interests at Prudhoe Bay was not included in the charter.
| 