Cnooc Ltd.’s Nexen Energy unit will eliminate 350 jobs this year after deciding not to repair its Long Lake oil-sands upgrader in northern Alberta following an explosion in January.
The facility, which processes bitumen into light synthetic crude oil, can’t be feasibly repaired in the short term, executives said on a call with reporters on Tuesday. Workers will lose their jobs at Long Lake and at the Calgary headquarters. Nexen will continue producing bitumen from Long Lake, resulting in lower costs, as well as improved reliability and safety, the company said. It plans to make a final decision about returning the upgrader to service later this year, taking into consideration changing market conditions.
