BP stands firm in face of criticism over tar sands project

OIL major BP signalled yesterday that it would press on with a controversial Canadian tar sands project despite criticism from environmentalists and shareholders.

BP said at its annual meeting in London that the oil sands work was key to meeting world demand for energy. Carl-Henric Svanberg, group chairman, said: "We need to make sure this world is powered. It is important that we all find ways to a better, lower carbon society, but we must always do the job that everyone expects of us."

A final decision on whether to finance the joint venture with Husky Energy of Canada will be made by the end of this year, the company said. BP secured a vote against a special resolution put forward by more than 140 shareholders and backed by comic Alistair McGowan and Radiohead's Thom Yorke demanding the firm review the project's viability .

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But only 6 per cent of shareholder votes backed the resolution, as 9.2 per cent abstained.

Investment charity FairPensions said BP "carried the vote but not the argument" on the oil sands resolution. Representatives from native Canadian communities at the meeting pleaded for a freeze on projects on the oil sand fields until health risks were known.

• Nearly 16 per cent of votes were withheld or cast against BP's remuneration report. Group chief executive Tony Hayward's pay package rose 41 per cent to 4 million last year, from 2.85m.

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