BP Investor Group Opposes Resolution Targeting Oil Sands

The U.K. Local Authority Pension Fund Forum said in a statement late Tuesday it has advised its members to oppose a shareholder resolution requiring BP PLC (BP) to commission a special report into risks associated with the Sunrise oil sands project in Canada.

The resolution, to be voted on at BP's annual general meeting on April 15, was brought about by more than 100 investors in the company concerned that oil sands developments are environmentally damaging and require too high an oil price to be economically sound. They want BP to issue a special report on risks associated with the Sunrise project.

The LAPFF said BP has already provided sufficient evidence that its approach to oil sands is well grounded.

"No evidence was found to indicate BP had adopted a position that was not supported by technical and economic research. The forum also does not believe BP or their partner have failed to meet the wide range of local requirements set by government to protect the environment and local communities," it said in a statement.

BP and its partner in Sunrise, Husky Energy Inc. (HSE.T), are set to decide this year whether to proceed with the project.

Company Web site: www.bp.com

-By James Herron, Dow Jones Newswires; [phone]; [e-mail]