Stevens backs BP-Amoco takeover of ARCO, but notes FTC anti-trust

by The Associated Press

Sen. Ted Stevens thinks BP Amoco’s proposed merger with the Atlantic Richfield Co. would be good for the state.

The Alaska Republican, who chairs the Senate Appropriations Committee, made the comments Dec. 13 while appearing at an Anchorage Chamber of Commerce luncheon.

Stevens also said he believes a deal between the Knowles administration and the oil company is a good one — winning concessions from BP that couldn’t have been achieved otherwise.

But Stevens avoided giving the deal his complete support, saying Federal Trade Commission investigators may raise anti-trust issues about the $30 billion merger proposal. Stevens said he spoke Dec. 9 with FTC Chairman Robert Pitofsky.

FTC regulators are looking at how the deal might affect gasoline prices in California, he said. Regulators also are studying whether ARCO could survive as an independent company if the BP takeover were blocked, Stevens said.

BP and ARCO are the state’s two largest oil producers. Together, they operate Alaska’s North Slope oil fields.

BP’s agreement with the state calls for the company to sell about 20 percent of its daily oil production and turn over operatorship of two fields — Kuparuk and Alpine — to another company.