Atlantic

The next growth step for Atlantic Canada’s fledgling natural-gasindustry has popped up on the horizon, in the form of a discoverywith potential to double offshore production and exports to NewEngland. Offshore of Nova Scotia, PanCanadian Petroleum Ltd.expects to know by the end of this year the true size of a gas findin the Sable Island region that it has christened Deep Panuke.

Skies brightened significantly last week for the merger of BPAmoco and Atlantic Richfield Co. (ARCO), with the companiesannouncing moves to assuage the Federal Trade Commission (FTC), butfederal regulators still have yet to give their blessing to theunion. And high gasoline prices have at least one legislatorcalling for strict curbs on oil patch mega-mergers.

BP Amoco said it is near an agreement with the FTC on its mergerwith Atlantic Richfield Co. (ARCO). The news comes with theannouncement the companies are selling ARCO’s Alaskan businesses toPhillips Petroleum Co. for $7 billion. BP Amoco also agreed to sellARCO’s interests in the Cushing storage terminal, together withvarious pipeline interests, to TEPPCO Partners of Houston for $355million.

BP Amoco’s merger with Atlantic Richfield Co. (ARCO) took a bigstep forward yesterday with the announcement the Federal TradeCommission agreed with the companies to seek adjournment of federalcourt proceedings opposing the merger. Reuters reported yesterdaythat Phillips Petroleum agreed to pay $6.5 to $7 billion for ARCO’sAlaska oil assets, which are being sold to meet the FTC’s antitrustobjections to the merger. An FTC spokesman said negotiationsbetween the commission and BP Amoco were ongoing and had no word onwhen a final announcement would be made. “We don’t know at thispoint. We really don’t. This is obviously a step in the rightdirection as far as a settlement is concerned.” BP Amoco stockclosed up $1.63 at $52.75 yesterday. ARCO closed up $4.25 at$83.25. Phillips closed down 38 cents at $39.06.

Shares of BP Amoco and Atlantic Richfield Co. (ARCO) rose lastFriday following press reports that the companies agreed to selloff all of ARCO’s Alaskan assets to avoid going to court with theFederal Trade Commission (FTC) over their proposed merger.

Shares of BP Amoco and Atlantic Richfield Co. (ARCO) rose lastFriday following press reports that the companies agreed to selloff all of ARCO’s Alaskan assets to avoid going to court with theFederal Trade Commission (FTC) over their proposed merger.

The merger of BP Amoco and Atlantic Richfield Co. (Arco) becamesignificantly more complicated last week. Now the companies facefederal and state opposition, but they’ve added one formerchallenger to their camp.

BP Amoco and Atlantic Richfield Co. (Arco) say they will fightthe Federal Trade Commission in court for their right to merge.Wednesday the FTC said it would seek a preliminary injunction infederal District Court to block the merger.

The blizzard that blanketed the Mid-Atlantic and Northeast lastweek forced the cancellation of a major meeting that was called toconsider whether the Gas Industry Standards Board (GISB) shouldexpand its reach to develop national standards not only for theretail gas market, but for the retail and wholesale power markets.