Nexen Energy to shut down Long Lake oilsands facility

Nexen Energyis shutting down its Long Lake oilsands operations south of FortMcMurrayin response to an emergency regulatory order.

• Alberta regulator orders Nexen to shut 95 pipelines at site of massive leak

Nexen estimated the shutdown process would take up to two weeks as it suspends pipeline operations and attempts to demonstrate to the Alberta Energy Regulator (AER) that its pipelines are safe.

The provincial regulator gave the order as part of an ongoing investigation into a large spill discovered in July. Five million litres of of bitumen, sand and oil leaked from a pipelineat thefacility.

"The suspension order requires the company to shut in 95 pipelines, which is about a quarter of the total number of pipelines at the Long Lake site," BobCurran, an AER spokesperson, said in a statement.

"Our focus remains the same: the company must provide us with assurance that the lines in question can be operated safely."

Nexen, the Canadian subsidiary of Chinese state-ownedCNOOC, says thepipelines impacted by the suspension order comprise the majority of the facility's infrastructurerequired for operations.

"Nexen is complying with the AER's suspension order," saidspokespersonDianeKossmanin anemail. "We're providing them with necessary documentation, suspending our pipelinesand shutting down our Long Lake oilsands operations.

"We're managing the risks associated with safely shutting down this complex and integrated facility," she added.