Algerian test for BP Amoco

Exploiting synergies in the US market, cost savings and economies of scale, and the new partners' strong position in Central Asia generated most publicity after the merger between The British Petroleum Company and the Houston-based Amoco was announced on 11 August, creating the world's third biggest oil company. Less attention was paid to the companies' operations in North Africa, but the BP Amoco tie-up will nevertheless have an impact on Egypt and especially on the Algerian deep south, where both firms plan innovative projects to pipe huge potential gas resources north to feed growing European markets.