Value Creation is a Canadian company which deals into oil-rich sand deposits. Both British energy major BP and Indian conglomerate Reliance Industries are very much interested to buy a majority stake in the Value Creation.

BP is agreeing to pay $1.2 billion for the stake while Reliance Industries is offering $2 billion for takeover.

BP is expected to be the preferred choice for the deal. As per the offer, BP may have a joint venture with the Canadian group. With this joint venture BP can increase its oil sands holdings by 50 percent.

But at the same time, BP is getting some opposition from environmentalists and some of company's shareholders. They believe that the deal is too expensive and will be a danger for environment. Technically, conversion of the oil in sand to usable fuel requires vast amounts of energy and destroys the landscape.

The company is in talk with its institutional investors to look into the matter. BP invited them to its London headquarters to resolve the issue.