Nexen: Buzzard Oil Field to Come Onstream This Month

LONDON, Dec 05, 2006 (Dow Jones Newswires)

Nexen Inc.'s Buzzard oil field in the U.K. North Sea is expected to come online later this month, the company said Tuesday.

"Nexen expects the Buzzard field to begin production in 2006," said the field's operator in a statement.

In October, the partners in Buzzard said they expected commercial oil flows to begin in November, but they later pushed back the date to the end of the year.

"We are currently in the final stages of the hook up and commissioning of the production facilities. Progress is slightly behind plan due to the severe weather conditions currently being experienced in the area," Nexen said.

In the first quarter of 2007, the field is expected to produce 85,000 barrels of oil equivalent a day, and between 2007 and 2008 it is expected to reach peak production of 190,000 to 200,000 barrels a day.

Nexen holds a 43.2% stake in the project, BG Group PLC (BRG) owns a 21.7% stake, Petro-Canada (PCZ) has a 29.9% share and Edinburgh Oil and Gas holds the remaining 5.2%.

Buzzard has an estimated 550 million barrels of recoverable reserves, making it one of the largest discoveries in the U.K. North Sea in decades.

"The oil is a medium gravity, sour crude with an API of 32.6 degrees," said the company.

The company had earlier said oil from the field would be a light, 32 degree API product.

Crude from Buzzard will be exported from the production platform through an 18-inch pipeline to the Forties Pipeline system, some 19 miles away, said Nexen on its Web site.

Copyright (c) 2006 Dow Jones & Company, Inc.

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