Phillips Petroleum's New Footprint on Alaska.

• Author: ESS, CHARLIE

How long the BP Amoco-ARCO merger could have stayed blocked by the Federal Trade Commission could have been anybody's guess. Though Alaska Gov. Tony Knowles and others laid out stipulations then blessed the takeover, which began last year, some were unsatisfied. The Federal Trade Commission, for example, concerned itself with the fact that BP's absorption of ARCO could lead to the company's undue control over gasoline markets on the East and West Coasts:

While the various players fumed, fretted or flied motions in court, one company buried its head in the books and came forward with a bid that would buy out ARGO's holdings in Alaska, which eventually lead to reallocated ownership to agreeable proportions among the companies on the North Slope. That company was Phillips Petroleum. In late April, Kevin Meyers, 46, formerly president of AR Alaska Inc., was named president and chief executive officer of Phillips Alaska Inc. Meyers also elected senior vice president of Phillips Petroleum Co. by the Phillips board of directors. Phillips has separated its worldwide production and operations, businesses into 1) Alaska, 2) Worldwide, with the exception of Alaska.

ABM: What does Phillips gain from entering into this deal with BP Amoco?

Meyers: The acquisition of ARCO's Alaska assets substantially increases Phillips exploration and production business. Phillips will add a total of 2.2 billion of oil equivalent, more than doubling its worldwide proven reserves. In addition the incremental net daily production gained from the Alaska assets in 2000 is expected to be about 340,000 barrels of oil equivalent This will make Phillips Alaska's Number One producer of oil and gas. Phillips also acquires about 7 trillion cubic feet of potential North Slope gas reserves.

ABM: So this was a chance to spring to action?

Meyers: Yes, this was an excellent opportunity for the company to move ahead on its aggressive growth agenda for the worldwide exploration and production business.

ABM: Describe Phillips Alaska by way of its magnitude in terms of oil and gas production.

Meyers: Today Phillips' asset base includes all of ARCO's Alaska businesses, plus all of Phillips' current Alaska operations, including the Kenai liquefied natural gas plant. Phillips will hold 36.5 percent in the Prudhoe Bay Unit We will operate both the Kuparuk (56 percent ownership) and the Alpine field (78 percent ownership). We will own 23.71 percent of the trans-Alaska oil pipeline. Altogether...