Nexen Sets Next Years Budget

Canadian producer Nexen Inc. set a 2002 capital investment budget of C$1.24 billion. This compares to C$1.38 billion of capital investment expected in 2001. Approximately $250 million will be invested to further Nexen's successful exploration programs in the Gulf of Mexico, Colombia, Yemen, Nigeria and Canada. Another $910 million will be invested in development projects to deliver production and value growth in 2002 and beyond. The development projects will include the deepwater Gunnison and Aspen fields in the U.S. Gulf, the Guando field in Colombia, the Syncrude expansion, plus several other projects. Nexen said its natural gas production is expected to average about 345 MMcf/d plus oil production around 226,000 b/d. Nexen's 2002 exploration program will feature 17 high potential exploratory wells in the deepwater Gulf of Mexico, western Canada, Yemen, Colombia and Nigeria. In total, these wells will test almost 800 million equivalent barrels of unrisked reserve potential.