Business

Canadian Nexen Petroleum Yemen Production backed to Full Capacity

NY

Gas fire for oil production in Yemen Masila Baisn

Nexen Inc. (NXY – Analyst Report), one of the top Canadian independent oil explorers, said that its annual production is expected to be at the lower end of its guidance range of 230–270 thousand barrels of oil equivalent a day (MBoe/d) before royalties, reflecting downtime at its Buzzard platform in the North Sea and a labor strike in Yemen.

Production disruption at Nexen’s Buzzard oil field, due to technological problems, has reduced the overall output level by nearly 50%. Again, a labor trouble in Yemen halted production for two days, hurting the company’s overall rate of output. However, on May 11, production level at Yemen returned to its full level.

Official oil export statistics have showed a 25.6% year-on-year (y/y) plunge in January this year and a 21.1% y/y plunge in February, as political crisis escalated in Yemen.

The statistics, released by the Central Bank of Yemen, put the country’s exports in February at 4.5 million barrels, down from 5.7 million barrels in February 2010.

Simultaneously, domestic demand continued to grow in Yemen and came in 22% higher on a y/y basis by early February—at a level of 4.5 million barrels per month—although because of domestic disturbances and supply chain disruptions consumption later that month it fell by 16.2%.

Thanks to the high oil prices, Yemen still saw a 4.1% increase in y/y oil export revenue by the end of February, collecting some USD454.9 million

 

Nexen Inc. (NXY – Analyst Report), one of the top Canadian independent oil explorers, said that its annual production is expected to be at the lower end of its guidance range of 230–270 thousand barrels of oil equivalent a day (MBoe/d) before royalties, reflecting downtime at its Buzzard platform in the North Sea and a labor strike in Yemen.

Production disruption at Nexen’s Buzzard oil field, due to technological problems, has reduced the overall output level by nearly 50%. Again, a labor trouble in Yemen halted production for two days, hurting the company’s overall rate of output. However, on May 11, production level at Yemen returned to its full level.

Official oil export statistics have showed a 25.6% year-on-year (y/y) plunge in January this year and a 21.1% y/y plunge in February, as political crisis escalated in Yemen.

The statistics, released by the Central Bank of Yemen, put the country’s exports in February at 4.5 million barrels, down from 5.7 million barrels in February 2010.

Simultaneously, domestic demand continued to grow in Yemen and came in 22% higher on a y/y basis by early February—at a level of 4.5 million barrels per month—although because of domestic disturbances and supply chain disruptions consumption later that month it fell by 16.2%.

Thanks to the high oil prices, Yemen still saw a 4.1% increase in y/y oil export revenue by the end of February, collecting some USD454.9 million