BP has announced an agreement with Nexen Petroleum USA Inc. that will bring BP’s Aspen (Green Canyon, Gulf of Mexico) discovery into production by the end of this year. Nexen, which had a minority interest in the project, will significantly increase its ownership interest as a result of this agreement. Under terms of the agreement, Nexen will pay incremental development costs for the Aspen field being ‘fast-tracked’ to production, and will now have a 60% equity stake in Aspen. Previously, the company held a 20% interest. BP will remain the operator. BP and Nexen have also agreed to a development plan for a portion of the field. Development of approximately 40 million barrels equivalent will be completed with subsea completions, located on Green Canyon block 243, tied back to a host platform. Production is expected to begin by 4Q 2002. The two companies will continue to work together on exploration of other portions of the field and several blocks near Aspen that are jointly held by the two companies.
