Nexen group gets OK to develop Golden Eagle

Nexen Petroleum UK Ltd., a subsidiary of Nexen Inc., has received regulatory approval to proceed with the $3.3 billion (Can.) Golden Eagle area oil and gas development in the North Sea.

Nexen Petroleum UK Ltd., a subsidiary of Nexen Inc., has received regulatory approval to proceed with the $3.3 billion (Can.) Golden Eagle area oil and gas development in the North Sea.

Golden Eagle is expected to produce an estimated 140 million bbl of oil equivalent of proved and probable reserves in 18 years. Oil production should begin in late 2014 at 70,000 boe/d.

The development encompasses the Golden Eagle and Peregrine reservoirs in central North Sea blocks 20/1N, 20/1, and 14/26a some 43 miles off Aberdeen. The development plan for Golden Eagle incorporates a combined production, utilities, and accommodation platform linked to a separate wellhead platform.

Plans call for 16 platform-based and four subsea development wells to be drilled and infield and takeaway pipelines.

Detailed design engineering has started, and fabrication is to begin in late 2011. Pipeline and subsea installation is set for early 2013 followed by drilling later that year.

Employment is expected to exceed 2,000 workers during construction and more than 400 once operational plus thousands of indirect jobs.

Nexen continues to explore and appraise adjacent acreage to identify future opportunities and potential synergies with the Golden Eagle infrastructure. This includes participating in an active UK North Sea exploration and appraisal campaign and investing in other development projects in the region.

Nexen, the second largest UK oil producer at 110,000 boe/d in 2010, has 1,200 full-time and contract staff at its Uxbridge and Aberdeen offices and offshore facilities. Buzzard field is its main asset.

Nexen Petroleum UK is the operator of Golden Eagle with 36.54% working interest. Maersk Oil North Sea UK Ltd. has 31.56%, Suncor Energy UK Ltd. 26.69%, and Edinburgh Oil & Gas Ltd. 5.21%.

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