The Gulf of Mexico is a critical component of Nexen's growth strategy.
Gulf of Mexico: Significant Sources of Oil & Natural Gas
Producing oil and gas in the Gulf of Mexico has taken place for decades and played an important role in providing the energy that a growing economy and consumers demand. With existing production infrastructure in place, and the potential for significant discoveries, the Gulf of Mexico is considered one of the world’s most significant oil and natural gas basins.
In 1972, Nexen took first steps to become an international company by establishing a U.S. subsidiary. Since that time our U.S. operations and exploration portfolio has grown significantly, making us one of the largest leaseholders in the Gulf of Mexico with approximately 200 blocks of land and proved plus probable reserves of approximately 205 million barrels of oil equivalent (mmboe).1
Our existing production and reserves are primarily concentrated in six deepwater and three shelf areas. Combined, these offshore facilities produced approximately 15,600 barrels of oil equivalent per day in 2012.
We see significant exploration potential in the Gulf of Mexico, which is why we continue to invest heavily in exploration opportunities. In 2010, we discovered oil at Appomattox, which is located approximately 72 miles off the Louisiana coast in about 7,200 feet of water. To date, Appomattox is estimated to contain (net to Nexen) 106 mmboe of probable reserves.1
Nexen manages CNOOC Limited working interests in four Statoil-operated offshore oil exploration prospects in the Gulf of Mexico — 10% interests in Krakatoa, Logan and Cobra and 20% in Tucker.
1 For more information about resources and reserves see our legal notice.