BP to delay Prudhoe Bay gas processing project

BP has indefinitely suspended work on a $ 120 mm natural gas processing project in the western Prudhoe Bay field on the Alaska North Slope, BP Alaska President Doug Suttles said.
The project was intended to process gas to enable BP to produce more conventional and heavy crude in that part of the oil field, the US's largest.

Speaking to a business conference in Anchorage, Suttles blamed a deteriorating business environment, including declining oil prices and rising costs, citing 15 %-20 % increases on the North Slope over the past two years.
BP announced the gas project in 2007 and had planned to have it in production by 2012.