The Usan vessel en route to operations off the shore of West Africa.

Measuring the Economic Benefits We Create

The economic benefits of Nexen’s activities extend beyond our company’s shareholders and employees. For example, production before royalties averaged 246,000 barrels of oil equivalent per day in 2010, which in turn resulted in royalties and taxes incurred of approximately $1.9 billion. These taxes and royalties are then reinvested by governments to support civic infrastructure, schools and hospitals that are essential to the well-being of society. The contributions Nexen makes through our economic success as a responsible energy developer help drive the strength and resiliency of the communities where we live and work.

Driving Economic Value

2010 Production before Royalties
246,000 boe/d
2010 Proved + Probable Reserves
2.1 billion boe

 For additional information about our resource estimates, read our forward looking statements.

Producing energy the world needs: Nexen estimates it has about 2.1 billion barrels of oil equivalent (boe) of proved plus probable reserves. Our reserves portfolio is weighted 93% in oil (predominantly oil sands related) and about 7% in gas. Additionally, we have 5.4 billion boe (best estimate) of recoverable contingent resources.

Nexen is also a 50% partner in a 70.5-megawatt Alberta-based wind power project.

Providing Government Revenues: In 2010, Nexen incurred more than $1.1 billion in taxes for governments in Canada and internationally. As well, Nexen royalties totalled $717 million; including $113 million directed to the Canadian government.

Current Income Taxes1
(Cdn$ millions)
2008 2009 2010
Yemen 274 148 166
Canada 2 1 (0)
United States (43) 5 (13)
United Kingdom 650 632 1,005
Other2 (24) (10) (26)
Total 859 776 1,132
1 Negative amounts represent tax refunds accrued.
2 Includes discontinued operations of $5 million for 2010 (2009 - $3 million, 2008 - $2 million).

Royalties1
(Cdn$ millions)
2008 2009 2010
Yemen 970 514 564
Canada2 290 125 113
United States 91 38 34
United Kingdom3 1 - -
Other4 19 6 6
Total 1,370 683 717
1 Royalties are cash payments and, in some international operations, the government’s share of Nexen’s production.
2 Includes Syncrude.
3 In the United Kingdom, new discoveries are not subject to royalty.
4 Includes mainly Colombia, Nigeria and Norway.

Oil & Gas Capital Investment, Including Acquisitions
(Cdn$ millions)
2008 2009 2010
3,054 3,303 2,702