Nexen, OPTI boost oil sands spending

CALGARY -- Nexen Inc. and OPTI Canada Inc. plan to spend another $360-million on their Long Lake, Alta., oil sands project -- 10 per cent more than the $3.5-billion budget -- but they're not blaming cost overruns that plague the industry. The companies say the money will add reliability to the operation and cut operating costs.

The companies, which own Long Lake 50-50, said $250-million will be used to increase the generation of steam, which is injected into wells to loosen up gooey bitumen so it can flow to the surface for processing. Having more steam available will decrease the chances of poor bitumen production results.

Nexen described it as "insurance."

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