Copyright of the Daily Oil Bulletin 2018
Nexen Moving Ahead With Long Lake Southwest Expansion
Nexen Energy, a wholly-owned subsidiary of CNOOC Limited, announced a positive final investment decision on its Long Lake Southwest expansion project in northern Alberta.
The company earlier had said it expected a FID in the first half of 2018 (DOB, March 29, 2018).
The approximately C$400 million project, which has received approval from the Alberta Energy Regulator (AER), will add 26,000 bbls/d of production from three well pads that will be tied-in to Nexen’s existing Long Lake oilsands facility.
Through this project, “we will 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.
The company said: “This decision further affirms CNOOC Limited’s long-term confidence in the Alberta energy sector and helps achieve the Alberta government’s climate objectives. We remain committed to growing our Canadian production profile, and our oil sands assets are an important component of this strategy.”