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BP, Husky Start Work on Sunrise Canadian Oil Sands Project

BP Plc and Husky Energy Inc. agreed to start work building the first phase of the Sunrise Energy Project in Canada’s northern Alberta province.

The partners plan to award about C$2 billion ($1.96 billion) in contracts to tap oil sands, Husky said today in a statement. First oil will be produced in 2014, Sheila Williams, a London-based spokeswoman, said by phone today.

The first phase of the project, which may eventually yield at least 3.7 billion barrels of oil, will cost C$2.5 billion, compared with an earlier prediction of about C$4 billion, Calgary-based Husky said in January. BP and Husky are equal partners in Sunrise, which may pump 200,000 barrels a day in 2020.

In April, a group of BP shareholders opposed the company’s oil sand projects because of risks and environmental concerns.

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