Nexen Says Yemen Operations Running at Normal Rate

Source: Reuters 5/4/2011, Location: Middle East

Nexen Inc said on Wednesday its oil production in Yemen is unaffected by the shutdown of one of the Middle East country's oil export terminals following a mid-March blast on its main oil pipeline.

The Ras Isa offshore oil terminal in the Red Sea closed three weeks ago, halting 110,000 barrels per day of exports, forcing the closure of the 130,000 bpd Aden refinery and forcing the impoverished country to import refined products from neighboring Saudi Arabia.

The pipeline blast occurred in the central Marib province, where several oil and gas fields operated by international companies are located.

However, Pierre Alvarez, a spokesman for Nexen, one of the largest producers in Yemen, said the company's operations there were unaffected by the shutdown of the pipeline and the export terminal or a labor dispute with workers at one of its fields. "Shipments are continuing and we are not affected," he said.


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