17th Mar 2008 13:30
BP PLC17 March 2008 March 17, 2008 BP JOINS IRVING OIL IN PROPOSED EIDER ROCK REFINERY PROJECT International oil major BP and regional refiner and marketer Irving Oil haveentered into a Memorandum of Understanding to work together on the next phase ofengineering, design, and feasibility for the proposed Eider Rock refinery inSaint John, New Brunswick, Canada. BP will contribute US$40 million as itsshare of funding for this stage of the study and the two companies will alsoinvestigate the possibility of forming a joint venture to build the refineryshould they decide to proceed. Irving Oil conducted initial feasibility work and informal public consultationin 2006, and has been engaged since January 2007 in permitting, publicconsultation, and engineering design for the proposed 300,000 barrel per dayrefinery. The refinery would be situated close to Irving Oil's existing 300,000barrel per day refinery and the existing Irving Canaport deepwater crude oilterminal which receives VLCC cargoes of crude oil and is located 65 miles (105km) from the US border. This next phase of engineering, design and feasibility work, combined withongoing permitting and community engagement activities represents over US$100million of investment over the next 12-15 months. "We are excited that a company of BP's calibre sees the potential in our regionand in this project to meet the need for a reliable and secure supply of refinedproducts for the north east," said Kenneth Irving, president of Irving Oil. "BPbrings international expertise and crude supply, but what really drew us topartner with BP was the cultural fit with our company and our shared belief thatthe world has changed when it comes to matters that relate to environmentalperformance and security of supply. Our shared belief on the future of energywill increase the potential of this project." "This refinery project is of great interest to BP because of its ideal locationclose to the markets of the north eastern US where product supplies areincreasingly in deficit," said Iain Conn, chief executive of BP's refining andmarketing business. "BP is keen to develop projects which enhance the energysecurity of Canada and the US. Irving Oil has a well-deserved leadingreputation in refining for the east coast. The two companies have a good trackrecord of working together and we are pleased to be jointly undertaking thefeasibility work on this exciting opportunity." "This project would support the further development of the New Brunswick energyhub and the refining industry on the East Coast," said Kevin Scott, Irving Oil'sdirector of refining growth. "We will continue to follow the rigourouspermitting process outlined by our Federal and Provincial Governments, and wewill continue to consult our community to ensure that, if the project proceeds,it will be one the community can be proud of." A final investment decision is not expected before 2009 and, although the finalcostings will only be clear once all the detailed engineering and design work iscompleted, the refinery is expected to cost at least US$7 billion. If permittingapproval is received and an investment decision is made to proceed, sitepreparation would begin in 2010, and full scale construction would begin in 2011with start-up expected in 2015. Irving Oil has committed to using the bestavailable proven technology to develop a refinery with leading environmentalperformance and economic efficiency. Notes to Editors: • About BP BP is one of the world's largest oil and gas companies with operations in morethan 100 countries across six continents. The company's main businesses areexploration and production of oil and gas; refining, manufacturing and marketingof oil products and petrochemicals; transportation and marketing of natural gas;and BP Alternative Energy, a growing business in renewable and low-carbon powerand next generation energy technologies. BP Canada is headquartered in Calgarywith natural gas exploration and production activities in Alberta, BritishColumbia and the Northwest Territories. BP also operates a significant naturalgas liquids (NGL) business with plants in Alberta, Saskatchewan and Ontario andis a leading marketer of natural gas, crude oil and NGLs in Canada. Furtherinformation is available at: www.bp.com and www.bpalternativenergy.com • About Irving Oil Irving Oil is the regional refiner and marketer with a history of long-termrelationships and partnerships. The company serves the US Northeast and EasternCanadian markets, and currently operates Canada's largest refinery in SaintJohn, New Brunswick. The Saint John 300,000 barrel per day refinery is situatedclose to diverse crude sources and is the closest refinery to the US Northeast.It accounts for 75% of Canada's petroleum product exports to the US, 45% of allclean petroleum products north of New York, and 20% of all US gasoline anddiesel imports. Irving Oil and Repsol YPF are currently completing constructionof Canada's first LNG regasification terminal. The Canaport LNG terminal willhave an initial send-out capacity of 1 billion cubic feet per day (1bcf/d), andis expected to be operational by the end of this year. Irving Oil was the firstoil company to win an Environmental Protection Agency (EPA) Clear Air ExcellenceAward, for its clean gasolines. For more information, visit: www.irvingoil.com. Further information: Jennifer Parker, Irving Oil, tel: +1 (506) 202 2992BP Press Office, London, tel: +44 (0)207 496 4358BP Canada Press Office, tel: +1 403 233 1033BP Press Office, Chicago, tel: +1 630 821 3212 - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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