Imperial Oil Limited has approved the first phase of the Kearl oil sands project, a surface mining operation northeast of Fort McMurray, Alberta.

The Kearl project is envisioned to be developed in three phases and could ultimately produce more than 300,000 barrels a day of bitumen. The first phase of the project, expected to begin production in late 2012 with total production to average 110,000 barrels per day, is anticipated to cost about $8 billion or approximately $4.50 per barrel to construct.

Tags: Imperial Oil