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

Our strategy in Yemen is to maximize the value from our existing blocks, prior to contract expiry. We operate from two producing blocks: Masila (Block 14) and East Al Hajr (Block 51). In 2008, we produced 56,600 bbls/d of oil before royalties (30,600 after royalties), representing approximately 23% of Nexen’s total production. Proved reserves of 31 mmboe before royalties (20 after royalties) comprise approximately 3% of Nexen’s total proved oil and gas and Syncrude reserves before royalties (2% after royalties).