Nexen produces synthetic oil from Long Lake
Nexen said it produced the first synthetic crude from its C$ 6.1 bn ($ 5 bn) Long Lake, Alberta, oil sands project,
although with the industry downturn the product is worth a fraction of what it would have been last summer.
Nexen, Canada's fourth-largest independent oil producer, said it will take 12-18 months before the upgrading plant at
the site pumps at the capacity rate of 60,000 bpd. The plant turns the tar-like crude from the oil sands into
refinery-ready light oil.
Oil prices have tumbled to around $ 40 a barrel from more than $ 147 in July due to the global economic meltdown. The
uncertain industry picture prompted Nexen to delay making a decision on going ahead with the second phase of Long
Lake in October.
The company's partner in the project is Opti Canada.
($ 1 = $ 1.25 Canadian)
