Japan Petroleum Corporation (Japex) said it plans to delay the launch of its Hangingstone oil sands expansion in Alberta by a few months.
The move is also expected to push up costs by $187million.
The oil and gas developer also said investment by a subsidiary in the expansion project would see it increase from $1.5billion to $1.25billion.
Japex plans to produce 20,000 barrels per day of bitumen for the project.