(Adds background on the fire)
NEW YORK, May 12 (Reuters) - CNOOC Ltd’s Nexen has issued a force majeure for 100 percent of its May production of Canadian heavy crude, two sources said on Thursday, the latest sign that a raging wildfire in the heart of Alberta’s oil sands is curbing supply.
Nexen’s force majeure relates to supply of its Long Lake Heavy crude, according to two sources familiar with the matter. Due to production cuts from counterparties, the company was also passing along a cut of 68 percent of Western Canadian Select and Access Western Blend crude sales to customers, the sources added.
A Nexen spokeswoman could not immediately be reached for comment.
The notice followed a string of major oil firms, including BP Plc and Suncor Energy, warning they will not be able to deliver on some contracts of Canadian crude following a May 1 fire that forced the evacuation of 88,000 people from Fort McMurray.
Roughly 1 million barrels per day (bpd) of output were shut down during the fire, about half of the oil sands’ usual daily production.
Reporting by Liz Hampton in Houston and Catherine Ngai in New York; Editing by Bernadette Baum and Meredith Mazzilli