(Adds details of Long Lake production)
CALGARY, Alberta, Sept 17 (Reuters) - Nexen Energy, a wholly
owned subsidiary of China's CNOOC Ltd 0883.HK , said on
Thursday it has resumed full production at its Long Lake oil
sands and upgrader facility in northern Alberta after regulators
amended a pipeline suspension order.
The Alberta Energy Regulator last month ordered Nexen to
shut in 95 pipelines at the Long Lake facility as part of an
investigation into one of the largest oil-related pipeline
spills on North American soil, discovered in July.
ID:nL1N1140O8
Nexen said the AER lifted the suspension order on 10
pipelines on Wednesday. That move was in addition to a Sept. 6
amendment to the suspension that allowed the company to restart
40 pipelines and maintain about 75 percent of production.
The two orders together mean the Long Lake facility can
return to full production. It was producing around 50,000
barrels per day of synthetic crude before the July spill.
A further 45 pipelines, which Nexen said are not currently
required for operations, remain closed.
"These pipelines, most of which involve production of oil
sands, will not return to service until Nexen can demonstrate
that the pipelines can be operated safely and within all
requirements," the AER said in a statement on Wednesday.
The investigation into the Nexen Long Lake pipeline failure
is ongoing.
Light synthetic crude from the oil sands for October
delivery weakened in early trading on Thursday. It last traded
at a discount of 65 cents per barrel below the West Texas
Intermediate benchmark, according to Shorcan Energy brokers,
widening from a discount of 35 cents per barrel below WTI on
Wednesday.