Nexen Produces First Premium Sweet Crude at Long Lake

Nexen Inc. has announced first production of Premium Sweet Crude (PSCTM) from the upgrader at Long Lake. The main process units in the upgrader have been successfully started up and are operating. Syngas from the upgrader is being used in SAGD operations and this will significantly reduce the need for purchased natural gas. The upgrader is expected to ramp-up to full design rates of approximately 60,000 bbls/d of PSCTM over the next 12 to 18 months. As the upgrader ramps up to full capacity, we expect that there will be periods of downtime as we work through the early stages of production. This periodic downtime is normal and consistent with industry experience.

"The production of first synthetic crude oil at Long Lake is a significant milestone and proves that the technology works," said Marvin Romanow, Nexen's President and Chief Executive Officer. "I would like to thank the thousands of people - our employees, our partner OPTI Canada Inc., our contractors, suppliers and government agencies - that have all contributed to this remarkable achievement. This is a world-class facility that we expect will produce premium synthetic crude at a significant cost advantage for the next 40 years."


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