SAN FRANCISCO (AP)  The Federal Trade Commission asked a judge Friday to stop BP Amoco's $30 billion takeover of Atlantic Richfield Co., saying the new company would dominate Alaska oil production and control supplies to West Coast refiners.

The FTC sued the companies in U.S. District Court, seeking a preliminary injunction to halt the merger. Commission members voted 3-2 Wednesday to oppose the deal.

The merger was originally scheduled to be completed Monday. But Atlantic Richfield spokeswoman Linda Dozier said the companies had agreed with the FTC to await the outcome of the request for an injunction. A hearing is scheduled March 10.

London-based BP Amoco was created a little more than a year ago by the merger of British Petroleum and Amoco. The company agreed last March to acquire Los Angeles-based Atlantic Richfield, known as Arco, a purchase that would create the second largest non-government oil company, behind Exxon Mobil.

BP Amoco and Arco account for about 70 percent of Alaska crude oil production and dominate oil activities in the state. The FTC's lawsuit argued that increased control of Alaska supplies to West Coast refiners would create a dangerous concentration in the market.

``The merger will reduce competition in the market for crude oil to targeted refineries on the West Coast by reducing the amount of (Alaska North Slope) crude oil reserves found and developed,'' the suit said.

The result will be an increase in oil prices charged to refineries, the commission said.

The companies contend the proper focus is the international oil market, which would compensate for any effect on the price of Alaska oil.

BP Amoco has agreed with the state of Alaska to sell off holdings that would reduce its share of production to 55 percent and shed part ownership in two Alaska oil fields.

Alaska Gov. Tony Knowles said Thursday his state would go to court to support the merger. He said uncertainty over the deal was hurting Alaska's economy.

http://wire.ap.org/?SLUG=BP%2dAMOCO%2dARCO

-- Oil oil everywhere and not (A drop@to.drink), February 04, 2000

Answers

Over here on the west side of Kaua'i, the international market controls our crude oil prices...we get our oil from places like Malaysia (now that raises other uncertainties...). So, in that sense, refineries could get oil from alternate sources if prices on Alaska crude were jacked up too high...

-- Mad Monk (madmonk@hawaiian.net), February 04, 2000.