Juneau -- Senate President Drue Pearce and House Speaker Brian Porter issued the following statement today after BP Amoco and Arco, Alaska's two largest oil producers, confirmed they were in negotiations to consolidate their two organizations. Together, BP Amoco and Arco would control nearly 75 percent of all present Alaska oil production and would have ownership of more than 70 percent of the Alyeska pipeline.

"While it is too early to know the real impact this merger will have, we are uncertain whether BP Amoco's acquisition of Arco would be in the best interest of the State of Alaska or the people of Alaska. The fact that one company would control so large a portion of Alaska's oil and gas resources puts our state in a very vulnerable position.

"We understand BP Amoco and Arco's business decision may be necessary for the companies to compete on the global market, but we must focus our concern on the impacts to Alaska. The Legislature will closely examine the ramifications this merger will have on Alaska properties, Alaska jobs, and resource development, before taking an official stance."