Yemen has been a significant international region since we first began production at Masila in 1993. We operate the country’s largest oil project and have developed excellent relationships with the government and local communities.

Our strategy in Yemen is to maximize the value from our existing blocks, while we continue to search for new reservoirs in deeper horizons. We have two producing blocks: Masila (Block 14) and East Al Hajr (Block 51). In 2007, we produced 71,600 bbls/d of oil before royalties (39,800 after royalties), representing approximately 28% of Nexen’s total production. Proved reserves of 41 mmboe before royalties (23 after royalties) comprise approximately 4% of Nexen’s total proved oil and gas and Syncrude reserves before royalties (3% after royalties).