BP faces opposition to Canadian oil sands project

LONDON (AP) – BP PLC faced down a rebellion from a vocal minority of shareholders on Thursday over a controversial oil sands project in Canada and the 40 percent pay increase granted to its chief executive.

A coalition of more than 100 shareholders backed a resolution at the company's annual general meeting calling for a review of its plans to extract oil from the vast tar sands in northeastern Alberta.

They wanted the company to provide more detail on the environmental impact of the project, which critics say will be more harmful to the environment that traditional oil extraction.

But BP, which argues it is crucial in helping meet the world's energy needs over the next 20 years, won the vote with the support of major institutional investors.

The company said it would make a final decision on whether to finance the joint venture with Canadian counterpart Husky Energy by the end of the year.

Speakers at the meeting included representatives from affected indigenous Canadian communities, who made a plea for a moratorium on further projects on the oil sands until further research is conducted into health risks for locals.

BP Chairman Carl-Henric Svanberg said the company would take into account the requests for greater transparency.

BP also faced the wrath of investors over pay plans for senior executives, with nearly 16 percent of shareholder votes withheld or cast against its remuneration report.

Some shareholders were unhappy that Chief Executive Tony Hayward was granted a 41 percent in his salary package last year to more than 4 million pounds, despite a slump in BP's profits.