Nexen's Release
Here's what Nexen had to say about LL
Oil Sands
We invested $228 million on the Long Lake project and other joint venture lands. The focus of the capital has been on the electric submersible pump (ESP) installation program, activities to increase production and reliability at Long Lake, advancing Kinosis and on our other future oil sands developments.
Ongoing initiatives to support the ramp-up at Long Lake include accelerated drilling of pads 12 and 13, which will be ready for steaming next year; the addition of two once-through steam generators that will add 10 to 15% to our existing steam capacity which will be ready for service late next year; and creating greater independence between the SAGD operations and upgrader by increasing gas inlet capacity and adding a diluent recovery unit. These investments represent $400 to $500 million of capital (net to Nexen) over the next few years, of which approximately half relates to the additional pads and represents an acceleration of capital spending.
We are also advancing engineering activities on Kinosis to develop two 40,000 bbl/d SAGD projects. This development plan provides us with the option to add an upgrader when SAGD projects are ramped up to capacity.
We are monitoring our partner's financial status and assessing their capabilities to continue funding their share of the capital spending. As the potential for this type of situation was contemplated at the time we entered into the joint venture we believe our interests are well protected.