Nexen U.S., co-owners sanction Stampede in the deep water Gulf of Mexico
HOUSTON, TX, Oct. 28, 2014 /PRNewswire/ - Nexen and co-owners in the Hess-operated Stampede development in the Gulf of Mexico today announced they have reached a final investment decision to proceed with the development of this project.
Nexen U.S., wholly-owned by CNOOC Limited, estimates the reservoir contains 300-350 million barrels of recoverable oil. The Stampede development is expected to begin production in 2018 through an 80,000 barrels of oil per day (bopd) tension leg platform (TLP) production facility.
Stampede, a joint development of the earlier Knotty Head and Pony discoveries, is located approximately 220 miles southeast of New Orleans at Green Canyon Blocks 511, 512 and 468. The Knotty Head field was discovered in 2005, and the Pony field was discovered in 2006. The water depth of Stampede is around 3,500 feet with a reservoir depth of 30,000 feet.
Stampede's development plan calls for an initial six subsea production wells and four water injection wells from two subsea drill centers tied back to an 80,000 bopd TLP equipped with water injection and gas-lift facilities.
"Nexen is extremely pleased with the excellent technical work performed by Hess in collaboration with the co-owners in bringing this project to sanction," said Keith Henderson, Vice President, Development, at Nexen's U.S. offshore division. "This next phase in the project is the result of persistent and focused hard work by the teams."
Nexen's co-owners in Stampede are Hess Corporation (25% and operator); Union Oil Company of California, a Chevron subsidiary (25%); and Statoil (25%). The total Stampede development is expected to cost approximately $6 billion.
"Nexen U.S. is committed to investing in the building of a major deep water business in the Gulf of Mexico, and the sanction of Stampede is a significant milestone in that journey," said Peter Addy, President of Nexen's U.S. offshore division.
This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by the Group can complete on schedule pursuant to its terms and timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the 2013 Annual Report on Form 20-F filed on 17 April 2014.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.
SOURCE Nexen U.S.
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