Japex says Canada oil sand project may cost $743 mln

TOKYO, Nov 5 (BestGrowthStock) – Japan Petroleum Exploration
(1662.T: ) may invest around 60 billion yen ($743 million) on the
Hangingstone oil sand expansion project in Canada for which it
is seeking government approval, a company executive said.

The Tokyo-based oil and gas developer in April asked for
Canadian government approval to expand bitumen output from the
project by up to 35,000 barrels per day.

Japex Executive Vice President Hiroshi Sato told reporters
on Friday that the investment would be around 60 billion yen and
that the firm would decide on the amount after the front-end
engineering design (FEED) is complete by the second quarter of
next year.

He added that the company expects the project to be
profitable because of high prices for heavy oil.

Japex said in April the Hangingstone oil sands were
producing about 7,000 bpd of bitumen, and the expansion is
expected to increase output by an average 25,000 to 30,000 bpd.

Japex has said it could begin output by late 2014 if it
receives approval in the autumn of next year.

A Japex subsidiary owns a 75 percent stake in the project,
while Nexen Inc (NXY.TO: ) has the rest.

Japex also said on Friday it plans to buy about 15,000
tonnes of liquefied natural gas (LNG) for about 900 million yen
to supplement supplies to the northern Japanese island of
Hokkaido for the peak winter season.
($1=80.75 Yen)
(Reporting by Osamu Tsukimori; Editing by Chris Gallagher)

Japex says Canada oil sand project may cost $743 mln