Phillips Petroleum Co. completed its acquisition of ARCO’s Alaskanbusinesses and gained Federal Trade Commission approval of the deal,which became effective retroactive to Jan. 1. The deal was announcedin March (see Daily GPI, March 17).

Kevin Meyers, currently president of ARCO Alaska Inc., willbecome president and CEO of Phillips Alaska Inc. Phillips Alaskawill include ARCO’s Alaskan businesses, plus all of Phillips’current Alaska operations, including the Kenai liquefied naturalgas plant.

As a result of the previously announced alignment agreementregarding the Prudhoe Bay Unit, Phillips’ earnings and cash flowaccretion are projected to exceed original expectations. Inaddition, net daily production from the assets in 2000 is nowexpected to be 340,000 barrels of oil equivalent (BOE), andPhillips will now add a total of 2.2 billion BOE to its reservesbase.

As previously announced, Phillips will pay BP $6.5 billion incash and up to an additional $500 million based on a formula tiedto the price of crude oil.

Yesterday marked the first of two closings and included all ofthe producing assets. A second closing on certain pipeline andmarine assets is pending regulatory approval and expiration ofpreferential rights.

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