TOKYO Dec 14 Japan Petroleum Exploration
(Japex) has decided to go ahead with a $1.4-billion
expansion of its Hangingstone oil sands project in Canada and
will initially triple output from the development, the company
Snapping up global energy assets in the wake of last year's
Fukushima nuclear disaster, Japanese companies have been
investors in Canada's oil sands, the world's third-largest
reserves of crude after Saudi Arabia and Venezuela.
The final investment decision, twice delayed over Canadian
government approval, means the company will increase output at
the project to 20,000 barrels per day (bpd) from 6,000 to 7,000
bpd. A decision to increase production to 30,000 bpd will be
taken later, the company said in a statement.
Japex will start construction immediately and expects to
start producing the higher output in the first half of 2016.
The project is expected to cost about C$1.4 billion ($1.42
billion), the company said.
A Japex subsidiary owns a 75 percent stake in the project,
while Canadian energy producer Nexen Inc has the rest.