Juneau -- Members of the Joint Special Committee on Mergers reacted with optimism over the Federal Trade Commission and British Petroleum's joint request to delay trial over the proposed BP/ARCO merger and today's announcement that BP will be selling ARCO's Alaska assets to Phillips Petroleum.

"The committee strongly supports an arrangement like the one announced today," said Merger Committee Chair, Senator Rick Halford (R-Chugiak). "The Committee was primarily looking for a vertically integrated competitor to take over for ARCO. Ideally we would also like to see a single operator in Prudhoe Bay. A single operator could maximize production and efficiencies while substantially reducing costs."

"It may be premature to get too excited about this proposal. The Legislature needs an opportunity to examine the details of the settlement and Phillips' commitment to Alaska," said Committee member, House Speaker Brian Porter (R-Anchorage). "All Alaskans want to focus on producing oil and not preparing for court."

Last month the Joint Special Committee on Mergers unanimously recommended that the Amended Charter Agreement negotiated between the Governor and BP was not in Alaska's best interests because it failed to require BP to divest a sufficient portion of ARCO's Alaska assets to preserve a vigorous level of competition in this state.

"It's ironic that the FTC brokered a more beneficial deal for Alaska in a matter of weeks than the Administration was able to obtain in the year since the merger was first announced," said Senator Drue Pearce (R-Anchorage). "Phillips has a long history with Alaska, with interests across the North Slope, from the NPRA to Point Thompson and significant opportunities in Cook Inlet, including the export of liquefied natural gas. They will be the most integrated company in Alaska. This is great news for Alaska and I look forward to expeditious, formal FTC approval."

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