Japex delays Canada oil sands investment decision

Mon Aug 20, 2012 2:54am EDT
 
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TOKYO (Reuters) - Japan Petroleum Exploration (1662.T: Quote) will make a final investment decision on its Hangingstone oil sands expansion project in Canada by the end of this year, delayed from its previous target date of mid-2012, the company said on Monday.

The decision will come after it receives permission for the development from the Alberta province, a company spokesman said.

Reflecting the delay, the company now expects to begin output from the expansion in January-June 2016, delayed from the previous outlook of around mid-2015, he said.

The project, which is seen costing around 70 billion to 80 billion yen ($880 million to $1 billion), aims to expand bitumen output by 25,000 to 30,000 barrels per day from production of around 7,000 bpd now.

A Japex subsidiary owns a 75 percent stake in the project, while Nexen Inc NXY.TO has the rest. ($1=79.5200 Japanese yen) (Reporting by Osamu Tsukimori)