The Buzzard field was discovered in 2001 and construction was completed in 2006, with production commencing early January 2007. During 2006, we installed the utilities and production topsides, drilled the initial development wells and completed hook-ups and project commissioning. The facilities have the capacity to process up to 200,000 bbls/d of oil and 60 mmcf/d of gas, including the removal of hydrogen sulphide. Based upon recent drilling results, we have experienced more well-to-well variability in the concentration of hydrogen sulphide than previously seen. We expect existing equipment and processes will allow us to manage this variability for at least the first two to three years of production. As we continue to develop the field, we are acquiring additional information regarding hydrogen sulphide in the reservoir. We are confident that we can maintain deliverability through existing equipment and processes until additional equipment is brought on stream in 2010. We have recently submitted an environmental impact assessment for an additional hydrogen sulphide treatment facility. The proposed facilities comprise a fourth platform with production sweetening capabilities. We plan to sanction this project in 2008. Our preliminary analysis indicates additional capital of between approximately $350 million and $400 million net to Nexen for the facilities. We anticipate the field will be produced through 27 production wells and reservoir pressure will be maintained through an active water-flood program. Buzzard is one of the largest discoveries in the UK North Sea in the last decade.

System Design Capacity
In order to accommodate the large volumes of oil and water, the facilities have the following design capacities:

Oil		200,000 bbls/d
Produced water		275,000 bbls/d
Gross fluids		345,000 bbls/d
Total water injection		350,000 bbls/d
Seawater injection		250,000 bbls/d
Total gas		60 mmcf/d

Export Pipelines

Oil will be exported from the Buzzard processing platform through an 18-inch pipeline to the Forties Pipeline System, some 28 kilometres away. From there, oil is transported to Cruden Bay and then to BP Kinneil for further processing.

Gas from Buzzard will be exported through a 10-inch pipeline to the Captain 'T' point on the U.K. Frigg pipeline, some 29 kilometres away. From there, the gas will go to the St. Fergus Gas Terminal. Based on current knowledge of the reservoir, it is likely that the platform will become gas deficient for power generation in the next 5-7 years. The agreement with the Frigg U.K. Pipeline owners provides for the supply of fuel gas at that time as required, as well as for commissioning and start-up.

Key Project Milestones

Environmental impact assessment	June - July 2003
Regulatory consent	November 27, 2003
Award long lead contracts	Q4 2003
Commence fabrication	Q1 2004
Pipeline installation	Summer 2004 - 2005
Jackets and wellhead deck installation	Summer 2005
Commence pre-drilling	Q4 2005
Utilities and quarters and production decks installation	June 2006
Hook up and commissioning	Second half 2006
Production start up	January 2007
Facility design production	Mid 2007