Forward

The Yukon Territory’s new Liberal government has stepped forwardto go to bat for a revival of the dormant Alaska Natural GasTransportation System (ANGTS) as its enthusiastic choice for anorthern pipeline project.

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).

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.

Development is accelerating on Canada’s newest gas frontier as athird production project steps forward to tap discoveries in thesouthern Northwest Territories.

Development is accelerating on Canada’s newest natural gasfrontier, as a third production project steps forward to tapdiscoveries in the southern Northwest Territories.

California regulators are scheduled to move natural gas industryrestructuring a few more notches forward this week, but not withoutmaking still more modifications as suggested by additional commentsfiled last week.

California regulators are scheduled to move natural gas industryrestructuring a few more notches forward this week, but not withoutmaking still more modifications as suggested by additional commentsfiled last week.

The on-again, off-again Southern Crossing project of BC Gascould go forward assuming the company agrees to terms specified inan approval from the British Columbia Utilities Commission (BCUC).

The on-again, off-again Southern Crossing project of BC Gascould go forward assuming the company agrees to terms specified inan approval from the British Columbia Utilities Commission (BCUC).