Representatives of the

Federal Trade Commission

and

Phillips Petroleum

(P)

are expected to meet as soon as Monday to discuss the purchase of

Atlantic Richfield's

(ARC) - Get Report

Alaska crude-oil production

facilities, a move that could clear the way for

BP Amoco

(BPA)

to acquire Arco,

The Wall Street Journal

reported Friday.

The FTC sued in federal court in February to halt BP Amoco's $30 billion acquisition of Arco due to regulatory concerns.

TST Recommends

While BP Amoco is expected to present Phillips as their preferred buyer, the commission will also seek to find out what other offers BP Amoco has received for Arco's assets in order to ensure stiff competition along the North Slope region of Alaska, the paper said. The assets are expected to sell for $5 billion-$7 billion.

The FTC does not pick a buyer, but it must approve BP Amoco's decision. The approval will center on whether the buyer will have the ability to compete with BP Amoco. The FTC is concerned that a company that acquires divested assets may not have the resources to make them competitive.

Chevron

(CHV)

,

Anadarko Petroleum

(APC) - Get Report

,

Conoco

(COC)

,

Unocal

(UCL)

and

Royal Dutch/Shell

(RD)

have all expressed interest in buying Arco's assets.

Based in Bartlesville, Okla., Phillips is the sixth largest oil company in the U.S. and has an approximate 4% share of the total U.S. automotive gasoline market.