Nexen on lookout for UK North Sea tiebacks

Offshore staff

CALGARY, Canada – Nexen Petroleum (NYSE: NXY) says production efficiency has improved at its Buzzard complex in the UK central North Sea.

During 1Q 2012, efficiency was 86%, just above the company’s target for the whole of this year, excluding planned downtime.

Nexen plans to drill an appraisal well in Buzzard’s north terrace area, and it is also evaluating potential tieback targets near theBuzzard, Scott, and Ettrick production facilities.

Offshore Nigeria, the company is a partner in the Usan field in block OML-138, whereoil production started in late February. Since then, rates have climbed to more than 100,000 b/d, with seven wells on line and more due to come onstream over the next few months.

Nexen expects to drill an exploration well at Owowo West on block OPL-223 later this year, as a follow-up to the2009 oil discovery at Owowo South B.

4/25/2012