N Sea Buzzard Field Remains Shut; Ramp-up Seen Wednesday
LONDON --Nexen Inc.'s (NXY) Buzzard oil field in the North Sea, the largest contributing to the Forties crude stream, remains shut after a Saturday incident but repairs there are going well and production is expected to ramp up Wednesday, a Nexen spokeswoman said Tuesday.
Nexen said Monday that there was a bearing failure Saturday morning on one of the gas compressors on the fourth platform at 200,000-barrel-a-day Buzzard.
The price of Forties, the main component of global benchmark Brent used to price most of the world's oil, was little changed in the price-setting afternoon trade Monday despite the Buzzard production halt.
North Sea traders and analysts said earlier Tuesday that only a prolonged halt in production at the field will boost the price of Forties.
North Sea grades prices have been pressured in recent weeks by seasonally low demand from refiners amid plenty of alternative supply of Russian Urals crude and West African grades, traders said.