BP Amoco and ARCO Prepare for Litigation

Thursday, March 02, 2000
Following the decision of the U.S. Federal Trade Commission (FTC) to oppose the proposed combination of BP Amoco and ARCO, the two companies reaffirmed their intention to pursue the issue in court. The companies said in a joint statement: "We are surprised and disappointed the FTC has rejected all efforts for a positive resolution. We have consistently been open to improvement of our original proposal. We have addressed the concerns of the State of Alaska. We have been, and remain, willing to discuss any reasonable options that might lead to a negotiated settlement. "We regret the only course now open to us is to resolve the issue through litigation, but we believe we have a compelling case in support of our combination which we will argue vigorously in court." The statement added: "Any suggestion there is a special West Coast market for Alaskan crude oil that functions independently of world crude prices is without foundation. In fact, the proposed combination of our companies will drive down Alaskan production costs, making Alaskan crude oil more competitive in the world market. "This fact was recognized in the charter agreement reached between the companies and the State of Alaska last December. West Coast consumers will benefit because BP Amoco has undertaken to continue ARCO's low-price, high-volume marketing strategy. Since there is no refining or marketing overlap between the two companies there should be no adverse competition issues concerning gasoline prices. "Unfortunately, litigation will add needless time and cost to the combination process," the companies said. "The losers from this delay and uncertainty are the people and communities who are relying on the combination for future projects, jobs and commitments." The proposed combination of BP Amoco and ARCO was announced on April 1, 1999 and was subsequently approved by the European Union and shareholders of both companies. An agreement was also reached with the State of Alaska committing the combined company to reduce its ownership of Alaska North Slope crude oil production as well as exploration acreage and interests in the Trans-Alaska Pipeline system and marine tankers.
Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

Ocean Safety’s New Liferaft Facility Opens

Ocean Safety, a specialist in the worldwide supply, distribution, service and hire of marine safety equipment, has opened a new liferaft hire division.   Ocean

ISS Inks Service Pact with Technip

Inchcape Shipping Services (ISS) and Techniphave signed a contract to provide marine agency services and logistics for the Rashid C project in the Middle East. Currently

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1021 sec (10 req/sec)