BP enters refinery agreement

BP and Irving Oil have entered into an agreement to collaborate on the next phase of engineering, design, and feasibility for the proposed Eider Rock refinery in Saint John, Canada.

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 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 would 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 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 with ongoing permitting and community engagement activities represents over $100m of investment over the next 12-15 months. The proposed refinery is expected to cost at least $7bn.