CALGARY, Alberta - Nexen Inc (NXY.TO) said on Thursday it produced the first synthetic crude from its C$6.1 billion ($5 billion) Long Lake, Alberta, oil sands project, although with the industry downturn the product is worth a fraction of what it would have been last summer.
Nexen, Canada's fourth-largest independent oil producer, said it will take 12-18 months before the upgrading plant at the site pumps at the capacity rate of 60,000 barrels a day.
The plant turns the tar-like crude from the oil sands into refinery-ready light oil.
Oil prices have tumbled to around $40 a barrel from more than $147 in July due to the global economic meltdown. The uncertain industry picture prompted Nexen to delay making a decision on going ahead with the second phase of Long Lake in October.
The company's partner in the project is Opti Canada Inc (OPC.TO).
Nexen, Canada's fourth-largest independent oil producer, said it will take 12-18 months before the upgrading plant at the site pumps at the capacity rate of 60,000 barrels a day.
The plant turns the tar-like crude from the oil sands into refinery-ready light oil.
Oil prices have tumbled to around $40 a barrel from more than $147 in July due to the global economic meltdown. The uncertain industry picture prompted Nexen to delay making a decision on going ahead with the second phase of Long Lake in October.
The company's partner in the project is Opti Canada Inc (OPC.TO).
