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Britain's benchmark oilfield, Buzzard, becomes more reliable

Tue, 08th Sep 2015 14:18

* Average 2015 output up about 9 percent from 2014

* Fewer unplanned shutdowns than 2014

* Field plays role in pricing global oil exports

By Alex Lawler

LONDON, Sept 8 (Reuters) - The North Sea Buzzard oilfield,which plays a role in pricing global crude exports, is pumpingmore oil this year and operating more reliably, industry sourcessaid, boosting supply of crude that helps underpin the Brentbenchmark.

Unplanned shutdowns at the British field can boost Brentprices and lead to higher price premiums of Brent futures forimmediate delivery - leading to volatiltyunwelcomed by traders caught on the wrong side of the move.

Buzzard is operated by Nexen, a unit of Chinese statecompany CNOOC. Other field partners are Suncor Energy Inc and Britain's BG Group, which is being bought byRoyal Dutch Shell.

Last year, production averaged about 154,000 barrels per day(bpd), according to UK government data. So far this year,average output has come up to about 168,000 bpd thanks in partto fewer outages, the sources said.

"Production has been pretty stable all year," said anindustry source. "The field is doing well."

Buzzard pumps less than 0.2 percent of daily world oilsupply but it is the largest field contributing to Fortiesblend, the most important of the four North Sea crude gradesunderpinning the Brent benchmark.

This location, at the centre of the benchmark used to pricetwo thirds of he world's oil, gives the field a bigger impact onpricing than its size would otherwise justify.

In 2014, Reuters reported on at least six unplannedshutdowns or production glitches at Buzzard. So far this year,only one outage has been reported and a planned shutdown isscheduled for October.

More reliable output is helping lead to more stable exportsof Forties crude blend, in contrast to 2014 when cargoes oftenfaced delays in their loading dates.

Nexen in early 2014 said it was targeting improvedreliability at Buzzard and detailed steps it had taken in orderto achieve this, such as improving the information available toworkers in the field's control room.

The company declined to comment on Buzzard's performance onTuesday. (Editing by William Hardy)

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