Imperial Oil is poised to go ahead with the C$8 billion (US$7.1 billion) Kearl oil sands project, the first major new development to be approved in northern Alberta since the recession forced a spate of cancellations.

Imperial said it expects to complete the project's first 110,000 barrel per day stage by late 2012.

Future expansions could boost production from the site north of Fort McMurray, Alberta, to 300,000 bpd.

Imperial, 69.9% owned by supermajor ExxonMobil, was widely expected to proceed with Kearl despite an industry downturn that forced the cancellation of at least C$90 billion worth of rival projects.