The Commission opened a full investigation (second phase) into certain aspects of the proposed merger between BP AMOCO and Atlantic Richfield (ARCO), both active in the oil production sector. The Commission will make a detailed assessment of the impact of the transaction in the market for exploration, development and production of crude oil. It will also look at the UK market for the transmission by pipeline and processing of gas produced in the North Sea.
The effects of the transactions will be assessed at the upstream level of the oil industry. The Commission intends to focus on whether the recent mergers among major non-OPEC competitors might adversely reduce the number of oil companies capable of searching for and developing unexplored reserves for consumption in the next 10-15 years. If so, the notified concentration might produce effects incompatible with the common market. (IP/99/388)
