Nexen's Buzzard Field Hosts Special Guests

Nexen Inc. on Friday said that British Prime Minister Tony Blair and Scottish First Minister Jack McConnell visited the Buzzard field in the North Sea.

"We were delighted to arrange and host this high level political visit. The Buzzard field is very important to both Nexen and the UK. To Nexen, it marks the culmination of years of dedication and hard work by all those who worked on the platform and on the field. For the UK, the field signifies major exploration success and significant continuing production as Buzzard is capable of supplying approximately 10% of the UK's annual forecast oil demand," said Charlie Fischer, Nexen's President and CEO. Buzzard is operated by Nexen Petroleum U.K. Limited (43.2%) on behalf of its co-venturers Petro-Canada (29.9%), BG Group (21.7%) and Edinburgh Oil and Gas (a company jointly owned by Oranje-Nassau and Dyas, 5.2%). The field is located in 100 meters of water, approximately 100 kilometers northeast of Aberdeen, Scotland. With gross recoverable reserves of approximately 550 million boe, it is one of the largest oil fields to be discovered and developed in the UK North Sea in over a decade.

The field started production on January 7, 2007 and is expected to reach peak production of 200,000 boe/d (85,000 boe/d net to Nexen) by mid-2007. Oil production is shipped to market via the BP-operated Forties pipeline system, while gas production is shipped via the Total-operated Frigg pipeline system.

Blair said, "The oil and gas industry, as I have seen today, is absolutely vital to our economy. Projects like the Buzzard field are delivering not only our energy needs but also high-quality jobs and investment in Aberdeen and throughout the UK."

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY, that is 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.