BP and Statoil to Strengthen Partnership After Proposed Amoco Merger

Strategic Insights -

BP and Statoil, the Norwegian oil and gas giant, are expected to sign new cooperation deals for countries where they have joint ventures following the proposed merger between BP and Amoco. The two companies have successfully collaborated in areas outside the North Sea and North America, including joint ventures in Azerbaijan and Vietnam, and the discovery of promising oilfields off West Africa. Despite the proposed merger, officials from both companies emphasized the desire to maintain their successful relationship. Statoil's vice-president, Rolf Larsen, stated that the companies aim to reach agreement on new deals covering individual countries by the end of 1998, coinciding with the deadline for completing the BP-Amoco merger.

Key Takeaways:

  • BP and Statoil are expected to sign new cooperation deals for countries where they have joint ventures after the proposed merger with Amoco.
  • The two companies have collaborated in joint ventures in Azerbaijan and Vietnam, and the discovery of promising oilfields off West Africa.
  • Statoil's vice-president, Rolf Larsen, stated that the companies aim to reach agreement on new deals covering individual countries by the end of 1998.
  • The proposed merger between BP and Amoco is to be completed by the end of 1998.
  • BP plans to file information requested by the US Federal Trade Commission on various aspects of the merger with Amoco in November.
  • The commission has 20 days to rule on the merger or seek more information after the details are filed.
  • Nippon Oil and Mitsubishi Oil are merging to create Japan's largest oil company, supplying about a quarter of the Japanese market.
  • The new company will be formed in April 1999.

Statistics:

  • 10%: The combined share of the petrol market that some US politicians have expressed concern about.
  • 20 days: The timeframe for the US Federal Trade Commission to rule on the merger or seek more information.
  • 1998: The deadline for completing the BP-Amoco merger and for Statoil and BP to reach agreement on new deals.
  • 1999: The year when Nippon Oil and Mitsubishi Oil's merger will be completed.
  • A quarter: The proportion of the Japanese market that the new oil company will supply.

Sources:

  • "BP and Statoil to strengthen ties after Amoco deal" by Frank Frazier
  • "Nippon Oil, Mitsubishi Oil to merge to form Japan's No. 1 oil firm"
  • "BP to file Amoco merger data with FTC in November"