UK: Buzzard Platform to Return to Full Production in July, Nexen Says

Nexen Inc. advises that it has finalized plans to upgrade the cooling system and return to full production at its Buzzard platform in the North Sea. The cooling medium is expected to be replaced by the end of May. During this period production will be limited to about 80,000 boe/d (gross).

Nexen expects  increase production beyond current levels through June and July and reach full capacity of over 200,000 boe/d towards the end of July as upgraded coolers are installed and commissioning of the fourth platform is completed. The company expects brief periods of downtime, or reduced rates, to complete these activities.

To mitigate this production shortfall Nexen is realigning the two week turnaround previously scheduled for September. Nexen is planning to accelerate some of the work to the next two months and take advantage of a five-day outage in August that is required to support third-party work on the Forties Pipeline.

In West Africa, the Usan floating production and storage offloading vessel is now en route and is expected to be on site for installation this summer. Usan remains on track for first oil next year.

In Yemen, production returned to full rates on May 11 following a shutdown for two days due to a labour strike.

In the Gulf of Mexico, the Bureau of Ocean Energy Management, Regulation and Enforcement approved an exploration plan to drill up to eight wells on Mississippi Canyon blocks 348, 391 and 392 which contain the Appomattox discovery. Shell is the operator of this joint venture. Nexen is currently waiting on a drilling permit to proceed on appraising Appomattox. Nexen estimates the recoverable contingent resource from the original Appomattox discovery exceeds 250 million boe (gross) with upside potential. Nexen has a 20% working interest at Appomattox.

The company also plans to drill two other exploration wells in the Gulf of Mexico this year. Applications to drill the operated Kakuna and Angel Fire deepwater prospects have been submitted and are proceeding through the approval process.


Source:Nexen , May 20, 2011