The two companies will create an integrated, North American oil sands business that includes both upstream and downstream assets.
"This transaction completes Husky's Sunrise Oil Sands total integration with respect to upstream and downstream solutions," said John C.S. Lau, president and chief executive officer of Husky Energy Inc. "Husky is extremely pleased to be partnering with BP, a world class global E & P and Refining company. The joint venture will provide better monitoring of project execution, costs and completion timing for this mega project development."
In the development, Husky and BP will each contribute an equal number of assets. The joint venture is expected to begin Jan. 1, 2008.
"Toledo and Sunrise are excellent assets. BP's move into oil sands with Husky is an opportunity to build a strategic, material position and the huge potential of Sunrise is the ideal entry point for BP into Canadian oil sands." said Tony Hayward, BP's group chief executive. "In addition this deal will help guarantee a supply of advanced products to major North American markets from Toledo which is a flexible and advantaged site."
The partnership, headquartered in Calgary, will source fuel gas and diluents and deliver diluted bitumen to a pipeline terminal at Hardisty, Alberta. Currently there are pipeline facilities to transport crude volumes from Hardisty to the Toledo, Ohio, refinery.