30th November 2005

Masterpower was appointed because of our in-depth knowledge of the oil & gas industry, our best practices and technical leadership. The entire project for was managed from assessing current systems, improving every phase of product design and performance, through to installation and commissioning.

The Client

Nexen Inc. is an independent global energy company listed on the Toronto and New York stock exchanges. The company was formed in 1971 and was originally known as Canadian Occidental Petroleum Ltd. Nexen explores, develops, produces and markets crude oil and natural gas.

Nexen has a range of assets in the North Sea, deep-water Gulf of Mexico, the Athabasca oil sands of Alberta, in Yemen and offshore West Africa. They aim to add value for shareholders through successful full-cycle oil and gas exploration and development, and leadership in ethics, integrity and environmental protection.

Nexen signed an agreement to acquire EnCana Corporation's UK subsidiary, EnCana (U.K.) Limited, for US$2.1 billion, effective September 30, 2004. This included EnCana's interests in the Buzzard discovery, along with the Scott and Telford producing fields, plus other satellite discoveries, and interests in exploratory blocks totaling approximately 740,000 net undeveloped acres.



The Problem

The Scott acquisition also included their experienced management and technical teams who identified an urgent need to review three ageing Maintained Power Supply Systems (MPSS). Nexen wanted to replace three dual MPSS systems with three dual redundant UPS systems as a matter of urgency.



Statement of Requirements

Nexen produced a statement of requirements, which planned for the work to be carried out in 2 phases. Phase I would be to change out two MPSS systems in the shutdown in 2005 and Phase II would change the third system in 2006. There was an additional problem, as the MPSS supported critical systems, Nexen could not leave the load unsupported during these replacement works.



The Solution

With this acquisition, Nexen were now a significant player in the region, with concentrated assets, infrastructure and significant exploration and development potential. However, as a new entrant to the North Sea, Nexen required specialist electrical engineering technical support.

Masterpower Electronics was appointed because of our in-depth knowledge of the oil & gas industry, our best practices and technical leadership. Masterpower would manage the entire project for Nexen from assessing current systems, improve every phase of product design and performance, through to installation and commissioning.



Basis for Design

After surveys of the job, and discussions with the client, Masterpower provided an integrated work plan, which covered design of replacement systems and a methodology of how the operation would flow. This methodology was critical encompassing not only design of the new systems, but an operational method which facilitated and ensured smooth progress of work from one stage to the next.



Detailed Design

The Masterpower Methodology covered the following:

· Design and delivery of new UPS systems
· Risk Assessments - both commercial and operational
· Integrated HSE programme
· Project Briefing/Permit to Work Training/Work Party Briefing
· Management of cabling and construction teams
· Installation of Temporary UPS Systems
· Installation of New UPS systems
· Transfer of loads to/from Temporary equipment
· Deconstruction of Temporary installation.
· Documentation



Operation

The project commenced in February 2005, with agreed work timescales and schedules. Nexen however brought forward their summer shutdown schedule by two months. Utilising the methodology developed by Masterpower, we quickly adapted the project plan and the first two UPS systems were replaced during the 17 days of the shutdown. Phase 1 of the project was completed by July.

Confirmation that Phase 1 had been successful and ahead of schedule, resulted in Phase II being commissioned immediately to replace the final MPSS system.



Conclusion

By the end of November 2005, Masterpower successfully completed the change-out of all three MPSS systems on the Scott Platform. Nexen were delighted that this had been a tremendously successful project delivered ahead of time and under budget. Nexen estimated that by utilising Masterpower as a specialist power electronics company they had effectively saved almost 75% from their initial proposed budget. Although the timeframe altered, their business requirements did not and Masterpower were flexible in both resourcing, planning and replacing the 3 dual MPSS systems with 3 dual redundant UPS systems as a matter of urgency.

In summary, this project was an outstanding collaboration between Nexen and Masterpower which met and achieved every performance benchmark and resulted in substantial savings in both time and money for Nexen.

The MPSS system to be replaced

The first part of the project required MPE to organised temporary cabling and set up temporary UPS supplies

The only possible access for the new equipment required Masterpower to design a special lifting frame, as standard designs would not fit

Then Masterpower removed the MPSS and refurbished its associated distribution boards. Once this work was complete, it was then possible to install and commission the new UPS systems

Finally Masterpower removed the temporary supplies and the load was supported by the new UPS systems. All this was achieved within a 17 day shutdown window.

"Special thanks to the Masterpower engineering team, commissioning engineers, technicians, and all other associates utilised for this workscope - a truly professional project from start to finish which had to absorb the late request from KBR/Nexen to accelerate the program to facilitate the shutdown date, which was brought forward at short notice... lets do it all again with the replacement of the Telecoms MPSS!"

Brian Kerr, Nexen Scott/Telford E&I Facilities Engineer and MPSS Replacement Project Sponsor