Golden Eagle building towards lift-off in 2011

Nexen estimates the recoverable contingent resource in the Golden Eagle area of the UK central North Sea at 150 MMboe or higher (over 55 MMboe, net to Nexen).

Offshore staff

CALGARY -- Nexen estimates the recoverable contingent resource in the Golden Eagle area of the UK central North Sea at 150 MMboe or higher (over 55 MMboe, net to Nexen).

The company is currently acquiring further acreage in the area and plans to drill an exploration well there mid-year. Development of the Golden Eagle area discoveries would support standalone facilities, Nexen claims, and would be economic even with oil prices significantly below present levels.

Development options are under review and the partners will select an optimum configuration prior to sanctioning the project in 2011. Nexen holds operated interests in three of the fields, namely Golden Eagle and Hobby (34% each) and Pink (46%).

West of the Shetland Islands, the company is also preparing to participate in a BP-operated exploration well on the North Uist prospect (Nexen 35%) which is expected to drill during the second half of this year. The target size is much larger than typical North Sea targets, Nexen adds.

Offshore West Africa, Nexen is a partner (20%) in the Total-led Usan development. Work is progressing toward first production in 2012.

The development includes an FPSO capable of processing 180,000 b/d of oil with storage capacity for up to 2 MMbbl

4/27/2010

More in Field Development