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.