One of the World's Most 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. asset base has grown significantly, making us one of the largest leaseholders in the Gulf of Mexico with more than 100 exploration prospects and proved plus probable reserves of approximately 116 million barrels of oil equivalent (boe).1

Today, the Gulf is a critical component to Nexen’s growth strategy. We currently hold deepwater and shelf producing assets as well as several significant undeveloped deepwater discoveries.

Producing Assets

Our existing production and reserves are primarily concentrated in six deepwater and four shelf areas. Combined, these offshore facilities produced approximately 22,000 barrels of oil equivalent per day in 2011.

Exploration Potential
We see significant exploration potential in the Gulf of Mexico, which is why we continue to invest heavily in exploration opportunities. We currently hold approximately 200 blocks of land, and we expect this acreage, led by future exploration success, to position us for long-term growth.

In 2010, we discovered Appomattox, which is located approximately 72 miles off the Louisiana coast in about 7,200 feet of water. This discovery is estimated to contain (net to Nexen) 65 mmboe of probable reserves of light oil plus approximately 50 mmboe (ranging from 25 to 90 mmboe) of contingent recoverable resources of light oil.1

1 For more information about resources and reserves see our legal notice.