ENERGY

Exxon, Arco, China Light Agree on $1.2-Billion Gas Deal: Agreement in principle was reached by Arco China Inc., a subsidiary of Los Angeles-based Atlantic Richfield Co., which operates a Chinese natural gas field owned with its joint-venture partners KUFPEC (China) Inc. and the China National Offshore Oil Corp. They will sell natural gas to an electricity-generating company owned by China Light & Power Co. and Exxon Energy Ltd., a unit of Houston-based Exxon Corp., which provides power service to Hong Kong. Last week, Exxon and China Light announced initial agreement with the Chinese to go ahead with $7.74 billion in investment to supply Hong Kong until the year 2008.