BP Delays First Output From Sunrise Tar Sands Project By At Least One Year - Bloomberg

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April 28 (Bloomberg) -- BP Plc, Europe’s second-largest oil company, delayed production of the first heavy oil from the Sunrise oil-sands project in Alberta, its joint venture with Husky Energy Inc., for at least a year.

The partners are now expecting to start producing bitumen in 2013 or 2014, the London-based company said today in an update posted on its Web site. The companies plan to sanction the project in 2010.

BP and Husky missed their 2008 target for a final investment decision, which would have allowed bitumen production to start in 2012. BP Chief Executive Officer Tony Hayward and Husky CEO John Lau said earlier this year they expect oil-field services and equipment costs to decline after crude prices fell almost $100 from a record $147.27 a barrel in July.

“Concept selection, front-end engineering and contracting strategy are being developed during 2009 to secure a project optimized for the current environment,” BP said today.

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