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In 2007, our UK production came primarily from Buzzard, with our share of royalty-free production averaging approximately 64,000 boe/d, which was approximately 25% of Nexen's total production

Buzzard
Buzzard began producing at the beginning of January 2007. In mid 2007, we reached facility design production rates. Oil from Buzzard is exported via the Forties pipeline to the Grangemouth refinery in Scotland. Gas is exported via the Frigg system to the St. Fergus Gas Terminal in northeast Scotland.

We expect to produce Buzzard through 27 production wells and maintain reservoir pressure through an active water-flood program. In 2008, we plan to invest $255 million to drill five production wells, two sidetracks, one water injector and progress work on the fourth platform.

Scott/Telford
Scott and Telford are producing fields with additional exploitation opportunities and both tie back to the Scott platform. Scott was discovered in 1987 and began producing in September 1993, while Telford was discovered in 1991 and came on stream in 1996. In 2007, we increased our interests in these fields and at the end of the year, we have a 41.9% working interest in the Scott platform and field, and a 71.75% working interest in Telford. In 2007, our share of production from these fields was approximately 16,500 boe/d. The production is royalty-free, around 90% oil and produced through numerous subsea wells. Oil is delivered to the Grangemouth refinery in Scotland via the Forties pipeline, while gas is exported via the SAGE pipeline to the St. Fergus Gas Terminal in northeast Scotland. In recent years, the Scott platform underwent a significant maintenance turnaround and facilities upgrade to improve reliability and extend facility life.

Other
Our 2004 UK acquisition included a non-operated interest in Farragon, a small satellite discovery, which was brought on stream in late 2005. In 2007, the non-operated Duart field was brought on stream and began producing oil from a single well tied back to the Tartan platform. Our share of production from these non-operated properties was 3,300 boe/d before royalties (3,300 after royalties) in 2007.


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Related Links

ICOP Infastructure Access
This document contains Scott infrastructure details and high-level capacity information as described in the Infrastructure Code of Practice. pdf  (3pg, 268 kb)

For further information, email Lloyd Hamel.

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