Nexen Says Gunnison Project On Schedule

Nexen says the Gunnison deepwater development project in the Gulf of Mexico remains on budget and on schedule. The truss SPAR production hull is complete and has been transported from the construction facility in Finland to a staging area in Texas. Mooring operations, installation of the production topside and pipeline tie-ins will be completed during the third and fourth quarters.

Production from the field is scheduled to commence in early 2004 at 30 million cubic feet of natural gas and 2,000 barrels of oil per day, net to Nexen, increasing to 50 million cubic feet of gas and 9,000 barrels of oil per day late in the year. The current development plan will fill approximately 75% of the design capacity of the facility, leaving room for growth from exploration and the processing of third-party volumes.