May 19, 2011 / 9:00 PM / 7 years ago

UPDATE 1-Nexen sees output at low end of target range

* Buzzard production seen lower until end of July

* Yemen output restored after two-day strike

CALGARY, Alberta, May 19 (Reuters) - Nexen Inc NXY.TO, Canada’s No. 6 independent oil explorer, said on Thursday it expects its annual production to be near the bottom of its target range due to recent outages in the North Sea and Yemen.

Equipment problems at Nexen’s Buzzard oil field, the North Sea’s biggest, have chopped production by half and a labor disruption in Yemen halted output there for two days last week, reducing the company’s overall expectations.

The company said it is replacing cooling equipment on the Buzzard platform by the end of this month, which will result in output grossing 80,000 barrels a day.

The field is expected to resume to capacity rates of about 200,000 bpd by the end of July as the upgraded coolers are installed and a fourth platform is completed.

Nexen said in November its expected 2011 output of 230,000-270,000 barrels of oil equivalent a day before royalties.

Shares of Nexen closed down 15 Canadian cents or 0.7 percent, at C$22.09 on Thursday.

$1=$0.97 Canadian Reporting by Jeffrey Jones

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