Bp Amoco Co. in Venezuela and Mercosur

BP Amoco Co. in Venezuela and MERCOSUR

By Brian Fiorentino

American Intercontinental University

Professor Sunil Kulkarni

BUS230-0602A-15 International Business

On December 30, 1998, BP and Amoco confirmed that the US Federal Trade Commission (FTC) has granted regulatory approval for the merger of the two companies and that completion of the deal will take place at year-end. Both companies agreed to intend to close the transaction shortly after 2100 hours London time on December 31, 1998, when Amoco's stock will leave the Standard & Poor 500 and the shares of the merged group, BP Amoco p.l.c., will be listed on the London Stock Exchange. With a market capitalization of more than $140 billion, BP Amoco p.l.c. is the Britain's biggest company and one of the world's top three oil majors.

"We aim to play a leading role in meeting the world's needs for oil, gas, solar power and petrochemicals without damaging the environment."

BP AMOCO'S WORLD

The BP Amoco group stands out as a complete provider of energy and petrochemicals. Every day they serve millions of customers with products to the quality of their lives - fuel for transport, energy for heat and light, solar power, and petrochemicals for plastics, fibers and fabrics. Explorers from Amoco and BP have led the way in finding the world's giant oil and gas fields and getting energy to the world's marketplace. According to Larry Fuller and Peter Sutherland, co-chairmen, the meeting the demand of energy calls for a blend of outstanding human and technical skills, sophisticated global organization and two-way relationships with local communities, customers, contractors, partners, government and employees. BP Amoco's aim is to be successful in everything they do by delivering outstanding performance.

Their business is about discovery - about finding, producing and marketing the natural energy resources on which the modern world depends. Their sales revenues, market value, and oil and gas reserves make BP Amoco one of the three largest integrated energy companies in the world. They operate in one hundred countries on six continents. Each day they generate almost three million barrels of oil equivalent production, of which sixty-five percent is oil and thirty-five percent natural gas. They have well-established operations in Europe, North and South America, Australia and much of Africa.

BP Amoco is distinguished by the financial resources to operate on a global scale, the technical capacity to seize opportunities, and a flexible management structure. The core of their business is a world-class set of assets. In Britain they are the largest producer of oil and gas from the North Sea and West of Shetland. In the United States they are one of the largest producers of oil and gas, based on major assets in the Gulf of Mexico, Texas and Alaska. In South America they are the largest international oil and gas investors in Argentina,