Thursday, April 19, 2012

Nexen gets approval to expand Long Lake

Photo from Global Forest Watch Canada
On Monday, Nexen announced it has received approval to expand its Long Lake SAGD operation. At 35,000 barrels per day over the last quarter, the project is not a total dog but is still producing less than half of what was planned. Nexen's 35% partner in the operation, OPTI, went bankrupt and was sold to CNOOC (a Chinese state controlled oil company) at a cut-rate price last year. People have speculated that Long Lake's crappy performance was one of the reasons Marvin Romanow stepped down as Nexen's CEO early this year. Nexen also recently failed to get its concession in Yemen renewed, which had increased pressure on Long Lake and other projects to be successful.

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