Japex sets date for Canada oil sand investment decision

Aug 5 (Reuters) - Japan Petroleum Exploration will make a final investment decision on its Hangingstone oil sand expansion project in Canada this autumn or winter after Canadian government approval expected this autumn, a company executive said on Friday.
The company currently plans to complete the front-end engineering design (FEED) on the project, expected to cost around 60 billion yen ($760 million), in autumn or winter, delayed from its initial plan of by the end of June, Japex Executive Vice President Hiroshi Sato said.
Japex, which is currently producing about 7,000 barrels per day of bitumen from the Hangingstone oil sands, is considering expanding output by an average 25,000 to 30,000 bpd.
The Tokyo-based oil and gas developer last year asked for Canadian government approval to expand bitumen output from the project by up to 35,000 bpd and is expected to obtain the approval this autumn, Sato said.
The company repeated that it expects to begin output in 2014 if it receives approval in the autumn.
A Japex subsidiary owns a 75 percent stake in the project, while Nexen Inc has the rest.
In Indonesia, Japex and its consortium plan to conduct an experimental drilling this year at block A in Nanggroe Aceh Darussalam, in which JAPEX holds a 16.7 percent stake, Sato told Reuters.
Japex had been considering the investment in the block after winning a 20-year gas field contract extension last year. PT Medco Energi International held a 41.7 percent stake in the block and is its operator. The remainder is held by Britain's Premier Oil . ($1 = 79.020 Japanese Yen) (Reporting by Osamu Tsukimori; Editing by Michael Watson)