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CALGARY - Nexen continues to take its time ramping up the long-awaited Long Lake oilsands project in light of lower second quarter results.
Although Long Lake produced about 18,000 barrels a day, Nexen recorded limited sales from the project, which remains well below its nameplate capacity of about 60,000 barrels a day.
Meanwhile, the company made $20 million - or four cents a share - compared to $380 million or 70 cents a share in 2008, a drop of about 95 per cent. Year-to-date profits fell to $155 million from $1.01 billion in the first half of last year.
Company CEO Marvin Romanov said Nexen continues to make minor modifications to enhance Long Lake`s performance, such as tweaking the configuration of various valves and other moving parts. Total costs amounted to less than $5 million in the quarter, a negligible portion of the project`s $6.1 billion price tag. Full production is expected later this year.
"We will have ups and downs and it won`t be linear," Romanov said. "The encouraging part to me is once we make these changes we`re seeing better reliability."
Read the full article here.
Although Long Lake produced about 18,000 barrels a day, Nexen recorded limited sales from the project, which remains well below its nameplate capacity of about 60,000 barrels a day.
Meanwhile, the company made $20 million - or four cents a share - compared to $380 million or 70 cents a share in 2008, a drop of about 95 per cent. Year-to-date profits fell to $155 million from $1.01 billion in the first half of last year.
Company CEO Marvin Romanov said Nexen continues to make minor modifications to enhance Long Lake`s performance, such as tweaking the configuration of various valves and other moving parts. Total costs amounted to less than $5 million in the quarter, a negligible portion of the project`s $6.1 billion price tag. Full production is expected later this year.
"We will have ups and downs and it won`t be linear," Romanov said. "The encouraging part to me is once we make these changes we`re seeing better reliability."
Read the full article here.