Suspension lifted at Long Lake

On Sunday, the Chinese National Offshore Oil Corporation (CNOOC) has been permitted to maintain three-quarters production at its Long Lake oil sands facility in Alberta, Canada after an inspection scare.

On Friday, the chief energy regulator for western Canada suspended the operating permits on 95 pipelines, due to suspicions of poor maintenance after an oil spill.  On Sunday the order was amended to allow production at CNOOC’s oil sands operations.

“As a result, Nexen [CNOOC’s holding in Alberta] is able to maintain approximately 75 percent of our Long Lake oil sands production and upgrader operations,” the company said in an online press release.

An internal audit at Nexen found some faulty documentation for pipeline maintenance, and prompted the Alberta Energy Regulator (AER) to ask for the suspension. The reversal came with weekend inspection, which found that 55 of the pipelines met all safety requirements.

“The AER is satisfied that the company has met the requirements detailed in the suspension order by demonstrating that these utility lines can be operated safely,” said AER spokeswoman Carrie Rosa.

Canada exports most of its 2 million barrels of oil per day in oil sands production to the US. The Long Lake facility produces about 50,000 barrels of oil per day.

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