Nexen

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Nexen
Type Wholly owned subsidiary
Industry Oil and gas, energy
Founded July 12, 1971 (1971-07-12)
Headquarters Calgary, Alberta, Canada
Key people Kevin Reinhart (CEO)
Li Fanrong (Chairman)
Revenue $6.7 billion CAD (2012)[1]
Net income $333 million CAD (2012)[1]
Total equity $8.8 billion CAD (2012)[2]
Employees 3,000 (2013)[2]
Parent CNOOC Limited
Website www.nexeninc.com

Nexen is a Canadian oil and gas company based in Calgary, Alberta. On February 25, 2013, Nexen became a wholly owned subsidiary of Beijing-based CNOOC Limited.

It has three growth strategies: oil sands and shale gas in western Canada as well as conventional exploration and development primarily in the North Sea, offshore in West Africa, and deepwater exploration in the Gulf of Mexico.[3]

History[edit]

The Nexen Building in Calgary

Nexen started in 1969 as Canadian Occidental Petroleum Ltd. (CanOxy), and was 80% owned by Occidental Petroleum, an oil company based in Los Angeles. In the first decade of its existence, CanOxy was fairly Canadian-oriented. During the 1980s and 1990s they increased their international holdings, first in the Gulf of Mexico, then into places like Yemen and the North Sea. Further Canadian assets were also acquired.

In the 1990s, Nexen, then known as CanOxy, purchased the assets of what once was the first state-owned oil and gas company in North America; Wascana Energy Inc., formerly known as SaskOil. Founded by Saskatchewan New Democratic Party Premier Allan Blakeney in 1973, Saskoil was privatized in 1986 by Progressive Conservative Premier Grant Devine.[4]

Acquisition by CNOOC Limited[edit]

CNOOC Limited, a major subsidiary of CNOOC headquartered in Beijing, acquired Nexen on February 25, 2013, Nexen. Nexen's common stock shareholders received cash proceeds of USD$27.50, without interest, whereas preferred stock shareholders of Nexen received cash proceeds of CAD$26, plus accrued and unpaid dividends without interest.[3]

Energy operations[edit]

Nexen has interests in Canada (including the Athabasca oil sands through a 7.23% ownership of Syncrude and the Long Lake project), the UK North Sea, the United States, and offshore West Africa. Beginning in February 2013, Nexen took accountability for managing approximately $8 billion in CNOOC Limited assets located throughout North and Central America.

Long Lake[edit]

The Long Lake project in the Athabasca Oil Sands was initiated in 2001. It was started in order to develop the Long Lake site using steam-assisted gravity drainage and the OrCrude process for on-site upgrading. Production capacity at Long Lake is 72,000 barrels of bitumen per day which, when upgraded, is capable of generating approximately 58,500 barrels per day. The proved reserves at the Long Lake site are 310,000,000 bbls.[5]

Marketing[edit]

Nexen also has an Energy Marketing division that trades and markets proprietary and third-party crude oil, natural gas, liquid natural gas, and electrical power.

See also[edit]

References[edit]

  1. ^ a b "Nexen Inc. financials". Google Finance Canada. Retrieved 2010-04-26. 
  2. ^ a b "Nexen Inc. (Public, TSE:NXY)". Google Finance Canada. Retrieved 2010-04-26. 
  3. ^ a b "Nexen Announces Completion of Acquisition by CNOOC Limited". Yahoo! Finance. 25 February 2013. 
  4. ^ "SASKOIL". Encyclopedia of Saskatchewan University of Regina. Retrieved 2012-06-18. 
  5. ^ OPTI Canda Inc. (December 17, 2008). "OPTI Outlines Capital Expenditure Plans, Divests Long Lake Interest". News Release. RigZone. Retrieved 2009-03-02. 

Coordinates: 51°2′47″N 114°4′47″W / 51.04639°N 114.07972°W / 51.04639; -114.07972