ExxonMobil Sues to Block Sale of Alaskan Oilfield Assets

Strategic Insights -

ExxonMobil has filed a lawsuit to block the sale of Alaskan oilfield assets worth $7 billion by Atlantic Richfield (Arco) to Phillips Petroleum, a move that is critical to regulatory approval of BP Amoco's proposed merger with Arco. The lawsuit aims to ensure ExxonMobil's interests are protected in the Prudhoe Bay oil field, where it has invested billions of dollars developing the resources. The dispute centers around the elimination of Arco and the selection of a new partner by BP Amoco, which ExxonMobil claims devalues its interests in the field.

Key Takeaways:

  • ExxonMobil is seeking a preliminary injunction against BP Amoco, Arco, and Phillips Petroleum to protect its interests in the Prudhoe Bay oil field.
  • The lawsuit revolves around the elimination of Arco and the selection of a new partner by BP Amoco, which ExxonMobil claims devalues its interests in the field.
  • ExxonMobil owns 42.9% of the gas in the Bay, Arco 42.6%, and BP Amoco 13.8%, while BP Amoco has the lion's share of the oil - 51.2% with Exxon owning 23.8% and Arco 21.9%.
  • The planned sale of Arco's Alaskan businesses to Phillips includes the Prudhoe Bay interest, stakes in other areas, pipeline and shipping operations, and assets, plus crude oil inventories.
  • ExxonMobil has invested billions of dollars developing the resources in the Alaskan field and believes it is essential that an operator in the challenging environment demonstrate both a broad, worldwide experience and a continuous investment in technology.
  • The lawsuit is the latest twist in the long-running campaign by BP Amoco to gain US Federal Trade Commission's blessing for its $28.6 billion merger with Arco.

Statistics:

  • The planned sale of Alaskan oilfield assets is worth $7 billion.
  • ExxonMobil has invested billions of dollars developing the resources in the Alaskan field.
  • BP Amoco's proposed merger with Arco is valued at $28.6 billion.
  • ExxonMobil owns 42.9% of the gas in the Prudhoe Bay oil field.
  • BP Amoco has the lion's share of the oil in the Prudhoe Bay oil field with 51.2%.

Sources:

  • ExxonMobil
  • "BP Amoco to Merge with Atlantic Richfield for $28.6 Billion."
  • "Exxon Mobil to Buy Colonial Pipeline Company."