"We view this transaction as providing inexpensive insurance," said Marvin Romanow, Nexen's Chief Financial Officer. "Next year, with the Buzzard development fully on-stream, we will have increased leverage to oil prices. These options provide a base level of price protection without limiting our upside in a sustained high price environment."
The put options were purchased for approximately US$24 million (US$0.63 per barrel).
Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, deep-water Gulf of Mexico, the Athabasca oil sands of Alberta, the Middle East and offshore West Africa.
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