Nexen Energy announces $400mn oilsands expansion plans
Calgary-based Nexen Energy, a subsidiary of CNOOC, has unveiled its plans to invest approximately CAD$400mn to expand its existing Long Lake oilsands project in northern Alberta.
The expansion, once completed, is expected to add 26,000 barrels per day (bpd) of capacity to the project’s existing 41,000 bpd output, as recorded by 2017 figures.
“Through this project, we will bring into production a meaningful number of lower steam-to-oil ratio wells, significantly improving Long Lake’s GHG performance,” Nexen said.
Having already received approval from Alberta’s regulatory authorities, construction is set to begin shortly, with first oil production forecast to begin before the end of 2020.
“This decision further affirms CNOOC Limited’s long-term confidence in the Alberta energy sector and helps achieve the Alberta Government’s climate objectives,” the company continued.
“We remain committed to growing our Canadian production profile, and our oil sands assets are an important component of this strategy.”