BP joins Irving in proposed Eider Rock refinery project

March 18, 2008
BP and Irving Oil, St. John, NB, have signed an MOU to work together on the next phase of engineering, design, and feasibility for the proposed 300,000 b/d Eider Rock refinery in St. John.

By OGJ editors
HOUSTON, Mar. 18 -- UK major BP PLC and Canadian refiner and marketer Irving Oil Ltd., St. John, NB, have signed a memorandum of understanding to work together on the next phase of engineering, design, and feasibility for the proposed 300,000 b/d Eider Rock refinery in St. John.

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

Irving Oil conducted initial feasibility work and informal public consultation in 2006 on the proposed refinery, and has been engaged since January 2007 in permitting, public consultation, and engineering design for the facility.

The refinery would be situated close to Irving Oil's existing 300,000 b/d refinery and the existing Irving Canaport deepwater oil terminal, which receives cargoes of oil from very large crude carriers (VLCCs) and is 65 miles from the US border.

This next phase of engineering, design and feasibility work, combined with ongoing permitting and community engagement activities, represents more than $100 million of investment over the next 12-15 months, Irving Oil said.

A final investment decision is not expected before 2009. The refinery is expected to cost at least $7 billion. If permitting approval is received and an investment decision is made to proceed, site preparation would begin in 2010 with full-scale construction to begin in 2011. Start-up is expected in 2015.