Nexen announces positive investment decision to grow oil sands production, with construction set tot begin shortly and first oil anticipated within 2 years.
Nexen is a Canadian oil and gas company based in Calgary, Alberta. On 25 February 2013, Nexen became a wholly owned subsidiary of Hong Kong-based CNOOC Limited
The approximately C$400 million project, which has received approval from the Alberta Energy Regulator, will add 26,000 bbls/d of production from three well pads that will be tied-in to Nexen’s existing Long Lake Oil Sands facility.
GMP FirstEnergy estimates Nexen's existing works produced about 41,000 barrels of bitumen per day in 2017.
Through this project, Nexen is anticipating to bring into production a meaningful number of lower steam-to-oil ratio wells, significantly improving Long Lake’s GHG performance. Construction is set to begin shortly, with first oil anticipated in late 2020.
This decision further affirms CNOOC Limited’s long-term confidence in the Alberta energy sector and helps achieve the Alberta Government’s climate objectives. Nexen remains "committed to growing our Canadian production profile, and our oil sands assets are an important component of this strategy."
Related, Nexen is facing provincial labour charges from the deaths of two employees after an explosion at the site in 2016 which led to it closing permanently its damaged Long Lake upgrader. It further faces regulatory charges after a Long Lake pipeline ruptured and spilled five million litres of sand, bitumen and wastewater into muskeg in 2015.
img: Global Forest Watch Canada