BP Amoco, Arco in Tentative Deal With Alaska

BP Amoco and Atlantic Richfield Co. said they reached a provisional agreement with Alaska to sell some of their assets, among other measures, to clear a hurdle in BP Amoco’s $27-billion bid for Arco. BP Amoco and Arco said they had agreed to sell 175,000 barrels of production per day, as well as associated infrastructure, 620,000 acres of state and federal exploration leases, and matching stakes in the Trans-Alaska pipeline system. Alaska is seeking to promote competition in Alaska’s North Slope. About 75% of Alaskan oil production comes from BP Amoco and Arco. Friday’s deal means BP Amoco will keep just over half of Arco’s current production in Alaska. On the NYSE, London-based BP Amoco’s American depositary receipts closed down $1.25 at $52.31, while Los Angeles-based Arco fell $2.13 to close at $81.88. News of the agreement came after the markets closed.