Canadian oil and gas company
) has missed the deadline for the completion of maintenance work
at the Buzzard oil field in the North Sea. Delay in the
commissioning of the fourth platform will hamper the company's
The Buzzard oil field is the key contributor to Forties crude.
Moreover, this crude is the most important constituent of
benchmark Brent, which is used to price a major portion of the
Due to the delay in work, a November cargo - F1104 - has been
dropped from the loading program of the Forties.
Production was scheduled to commence in mid October but now it
has been postponed by a week.
Calgary, Alberta-based Nexen has a diversified portfolio of
exploration and production operations in Canada, the U.S. Gulf of
Mexico, North Sea (U.K.), Yemen, Nigeria and other areas. We
believe that the company's multi-year inventory of development
projects and endeavors will aid in accomplishing the targeted
Nexen has been actively investing in its upstream assets in
recent years, significantly improving its long-term,
production-growth prospect. The production efficiency at Buzzard
surpassed the company's target of 85% and touched 88% in the
second quarter of 2012.
Of late, Nexen has been in the news following its purchase deal
with Chinese energy giant
) last July for approximately $15.1 billion in cash. Per the
agreement, which is expected to be wrapped up by this year-end,
CNOOC will buy all the outstanding common shares of Nexen at
$27.50 per share, representing a premium of 61% to its closing
price on the New York Stock Exchange on July 20.
Nexen retains a Zacks #2 Rank, which is equivalent to a Buy
rating for the period of one to three months.
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