Nexen advances Scott maintenance

Offshore staff

CALGARY, Alberta -- A valve failure on the Forties pipeline system has forced Nexen to shut-in production from its Scott platform in the UK central North Sea.

Operator Apache is trying to determine the root cause and the type of repairs needed. In the meantime, Nexen is advancing its shutdown program at Scott which had been planned for later this summer. Its 2Q 2010 production from Scott and the associated Telford field averaged 18,000 boe/d.

Nexen is looking to tieback the Blackbird discovery to its Ettrrick field FPSO, following a successful appraisal well. The latest well, drilled in a water depth of 367 ft (112 m), encountered light sweet oil in good quality Upper Jurassic reservoir sands.

The company is acquiring wireline log and core data over the reservoir section for further analysis. It plans to complete the well and drillstem test later this month. If successful, the well will be suspended for future use as an oil producer.

Elsewhere in the central North Sea, Nexen estimates recoverable contingent resources at its Golden Eagle area fields (Golden Eagle, Hobby, Pink) at 150 MMboe or higher. It is currently acquiring further acreage in the area, and aims to drill an exploration well here later this year.

This development warrants standalone facilities and would be economic even with oil prices significantly below present levels. Options for the development are under assessment, with a view to achieving project sanction in 2011.

At the Buzzard complex, Nexen also sees opportunities to add reserves. In the northern part of the field, there is evidence of more oil than anticipated above the water contact. In the south, it plans to drill a possible extension of the field, named Bluebell. And at Polecat, a discovery east of Buzzard, it is looking to drill an appraisal well which could be tied back to a Buzzard platform.

West of Shetland, Nexen is preparing to drill the North Uist prospect later this year as a 35% participant (non-operated). This is a much larger prospect than typical North Sea targets, the company says.

Offshore Nigeria, Nexen is also a partner in Total’s deepwater Usan development, where first production is expected in 2012. The central facility will be an FPSO capable of processing 180,000 b/d of oil and storing up to 2 MMbbl.

Last month, the major topside modules were lifted onto the deck and the FPSO is now almost 80% complete.

07/16/2010