Our crude oil business focuses on marketing physical crude oil to end-use refiners. The crude oil group markets Nexen’s production and more than 650,000 bbls/d of third-party production. In addition to physical marketing, we take advantage of quality, time and location spreads.

Our North American operations focus on key regions supported by our offices in Calgary, Houston and Denver. In western Canada, our producer services group concentrates on purchasing from a diversified supply base, while our trading team seeks to optimize the mix for sale to refiners. Traditionally, the Chicago and Denver areas have been key markets for our western Canadian crude, however, we continue to expand our presence into the US Gulf Coast. Our deep-water Gulf of Mexico crude oil production has expanded our presence in that market through our Houston office. At the end of 2007, we had access to 2.7 mmbbls of storage and over the course of the year, marketed approximately 655 mbbls per day.

Our crude oil marketing group also enters into financial contracts intended to capture trading profits around time, quality and location spreads. Like gas marketing, the risks assumed are based on fundamental analysis and proprietary knowledge of regional markets, and are monitored by our risk group.

Our Business

• Market 600,000+ bbls/d in North America
• Terminals in North America
• Manage 2.5+mmbbls of storage in North America
• Linked geographically with offices in Calgary, Denver and Houston