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BP and Irving Oil Enter into Agreement on Proposed New Brunswick Refinery

Posted on: Wednesday, 19 March 2008, 06:00 CDT

International oil major BP and regional refiner and marketer Irving Oil have entered into a memorandum of understanding to work together on the next phase of engineering, design and feasibility for the proposed Eider Rock refinery in Saint John, New Brunswick, Canada.

BP will contribute $40 million as its share of funding for this stage of the study and the two companies will also investigate the possibility of forming a joint venture to build the refinery should they decide to proceed.

Irving Oil conducted the initial feasibility work and informal public consultation in 2006, and has been engaged since January 2007 in permitting, public consultation and engineering design for the proposed 300,000 barrel per day refinery.

The refinery will be situated close to Irving Oil's existing 300,000 barrel per day refinery and the existing Irving Canaport deepwater crude oil terminal which receives very large crude carrier cargoes of crude oil and is located 65 miles from the US border.

BP noted that this phase of engineering, design and feasibility work, combined with ongoing permitting and community engagement activities, represents over $100 million of investment over the next 12-15 months.

Iain Conn, CEO of BP's refining and marketing business, said: "This refinery project is of great interest to BP because of its ideal location close to the markets of the northeastern US where product supplies are increasingly in deficit. BP is keen to develop projects which enhance the energy security of Canada and the US."

Source: Datamonitor

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