Energy regulator in the province of Alberta has allowed partial resumption of pipeline operations of CNOOC subsidiary Nexen Energy.
Alberta Energy Regulator (AER) had issued an order last month to stop operations of 95 of its pipelines in northeastern parts of the Canadian province.
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The order was issued following a massive breach of Nexen’s pipeline in July which had resulted in five million litres of bitumen, sand and contaminated water spilling at Long Lake operations.
This new order has allowed 40 of the pipelines to resume operations following thorough AER inspections of the site and documentation.
The regulator also needed to be convinced that the present operating conditions of the utility lines pose only minimal risk to public safety and environmental protection for the suspension to be partially lifted.
Remaining 55 remaining pipelines which enable transportation for products including crude oil, natural gas, salt water, fresh water and emulsion, will continue to be dysfunctional, AER said.
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By GlobalDataNexen is expected to devise an action plan and implement it to improve operations for the affected pipelines, which will include rigorous inspection plan and daily and weekly inspections.
The firm will continue to provide the regulator with inspection result updates.
Following the investigation process, Nexen is likely to undergo further enforcement action, the noncompliance level for which will be decided by AER.
The company said in a statement: ‘Nexen will comply with the requirements of the Amendment Order and will continue to comply with a Suspension Order issued by the AER on Friday, August 28 to satisfactorily address the remaining pipelines in a safe and timely manner.’
Following the resumption of operation, the company will maintain approximately 75% of its Long Lake oil sands production and upgrade operations.
