Japan Petroleum Explorration Co., Ltd. (JAPEX) had decided to go ahead with a $1.4-billion expansion of its Hangingstone oil sands project in Canada. The company plans to initially triple output from the development.

Japanese companies have been snapping up global energy assets after last year's Fukushima nuclear disaster. There has been a lot of interest in Canada's oil sands, the world's third-largest reserves of crude.

The final investment decision means that Japex will increase output at the project to 20,000 barrels per day (bpd) from 6,000 to 7,000 bpd. In a statement, the company said that a decision to increase production to 30,000 bpd will be taken later.

The company will start construction immediately, expecting to start producing the higher output in the first half of 2016.

The project is expected to cost about C$1.4 billion ($1.42 billion), Japex said.

Tags: Japan Petroleum Explorration Co., Ltd. (JAPEX)