The proposed merger of Anadarko Petroleum and Union PacificResources moved forward yesterday when the U.S. Federal TradeCommission (FTC) granted early termination of the statutory waitingperiod required under the Hart-Scott-Rodino Anti-Trust ImprovementsAct. Completion of the merger still is subject to the approval ofthe shareholders of both companies and satisfaction of othercustomary conditions. Under the agreement, which was unanimouslyapproved by each company’s board of directors, UPR shareholderswill receive 0.455 Anadarko common shares for each UPR common sharethey own. The offer is worth about $5.6 billion. Anadarko will alsotake on $2.6 billion in long-term debt from UPR. Closing isexpected in July. UPR will become a wholly-owned subsidiary ofHouston-based Anadarko. The purchase more than doubles Anadarko’sNorth American gas reserves from 2.5 Tcf to 5.8 Tcf. The increasemoves the company from the 13th largest company in terms of NorthAmerican gas reserves to fifth. The increase of production is evenmore pronounced, as Anadarko will go from 170 Bcf/year (20th place)by itself to 634 Bcf/year (sixth place).

AltaGas Services Inc. is buying four small gas midstreamgathering and processing facilities for a total of $15.7 million.The plants and facilities include the following: 1) an 8 MMcf/d gasplant with fractionation capability located near the town of Brooksin central Alberta and a 36-mile gas gathering system with accessto 24 townships. Reserves behind the plant have a life index inexcess of 10 years; 2) a 16%, non-operated, working interest in a10 MMcf/d gas plant and 44 miles of associated gathering lines; 3)a 2 MMcf/d gas plant and 2-mile gathering line located southeast ofEdmonton; and 4) a further 15% ownership interest in the KillamNorth gas plant located in the company’s Birch Wavy operating area.With this purchase, AltaGas’ ownership interest in this facilitywill be approximately 70%.

BP Amoco announced the discovery of some 2 Tcf of gas off thesoutheast coast of Trinidad, the country’s first deep-water find.This is BP Amoco’s third major gas find offshore Trinidad in thepast three years. The discovery was made by the ‘Manakin 1’exploration well in block 5b, located 135 miles east of GaleotaPoint in 730 feet water depth on a large structure that straddlesthe Trinidad-Venezuela median line. “This new find reinforces theindustry’s assessment of significant gas potential in this basinand it augurs well for future development from which Trinidad andTobago will benefit enormously,” said Larry Tiezzi, President ofthe BP Amoco Trinidad exploration business unit. “Trinidad &Tobago is a world class hydrocarbon province and this well resultadds another discovery to a long list of successes underpinning ourstrategy to focus significant resources in this region. We recentlyagreed a two-train LNG expansion in Trinidad which will trebleproduction to nine million tonnes a year by 2003, at TT$7,000million the largest single investment in the Caribbean.”

Southern California Edison will sell its 56% controllinginterest in the Mohave Generating Station to AES Corp. for morethan $667 million, a sale that now brings to 15 the number ofgenerating assets SCE has sold within the past three years as partof its marketing restructure plan. SCE market-valued and sold 12gas-fired California plants in 1997 and 1998 through an auctionprocess, similar to one used for the Mohave sale announcedyesterday. The Mohave station, located in Laughlin, NV, willcontinue to be operated and maintained by SCE for two years inaccordance with AB 1890, California’s electricity marketrestructuring law. The remaining interests in the Mohave facilityare owned by the City of Los Angeles Department of Water and Power,which owns 20%, and the Salt River Project, which owns 10% of thefacility. AES will acquire SCE’s interest in the two-unit,coal-fired plant, which represents about 885 MW of the coal plant’s1,580 MW generating capacity. The transaction still must beapproved by the California Public Utilities Commission and FERC,and reviewed by the Public Utilities Commission of Nevada, and ifall goes as planned, the sale will close by November, according tocompany officials.

A unit of Williams has agreed to provide various amounts ofenergy and capacity to Old Dominion Electric Cooperative beginningin the fourth quarter of 2001 in a heat rate call option andcapacity sale announced yesterday. Williams’ energy marketing andtrading unit had been selected by the Glen Allen, VA cooperative aspart of its 1999 Request for Supply Proposals in late 1999 to meetthe needs of members in Delaware, Maryland and Virginia. Thecapacity sale will be supported primarily by the 700-MW Ironwoodgenerating facility in South Lebanon Township, PA.

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