BP Canada oil plan faces shareholder vote
April 15, 2010
Oil giant BP is facing a rebellion from major shareholders over financial and environmental concerns connected to its project in Canada's oil sand reserves.
Some 140 institutional and individual investors are expected to back a resolution at the firm's London AGM calling for a review of the plans.
However the vote is opposed by BP's board and is not expected to be passed.
BP says action has been taken to mitigate some of the harmful effects and emissions from the joint venture.
The company says the extraction process used in the Sunrise project with Canada's Husky Energy is less damaging than traditional methods and it has been open about its intentions.
BP is also likely to come under pressure its pay policies for top bosses.
Chief executive Tony Hayward received a 41% rise in his remuneration package in 2009 - meaning he took home about £4m in salary, bonus and share awards.
This was despite the firm seeing last year's profits fall by 45% to $13.96bn(£9.2bn).
Internet campaign
The vast oil sands in north-eastern Alberta have the largest known oil reserves in the world outside of Saudi Arabia, in the form of Bitumen.
Environmental campaigners say the extraction process is an energy intensive business, resulting in high levels of carbon emissions.
They also warn of pollution, deforestation and harm to local communities.
Several major pension funds have been spurred on by 5,000 individuals who backed an campaign co-ordinated by responsible investment charity FairPensions and Co-operative Asset Management.
The shareholders will vote for a special resolution, which calls on the oil giant to report on the financial, environmental and social risks associated with the plans.
BBC business correspondent John Moylan says some shareholders fear the environmental risks associated with extracting the oil could hit BP's profits and share price in the future.
Other company's are also facing protests over their plans for the oil sands, with same resolution set to be put to a vote at Shell's AGM next month.
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