TONY HAYWARD, BP’s chief executive, has set the FTSE 100 oil group on a collision course with investors and environmentalists over a blockbuster oil sands deal.
The company is in talks to pay about $1.2 billion (£766m) for a majority stake in Value Creation, a Canadian company that has substantial reserves of the oil-rich sand deposits. Environmentalists and some BP shareholders fiercely oppose the oil sands business, which they say is expensive and environmentally damaging.
Value Creation is in financial trouble and faces being put into receivership tomorrow. News of the negotiations with BP is expected to win it a temporary reprieve.
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