Nexen: From Canadian Energy Giant to Subsidiary of CNOOC

Nexen Inc. is a leading international oil and gas company. Since its founding in 1971, Nexen has expanded its global footprint, evolving into a diversified energy company focused on oil and gas exploration, development, and production. Headquartered in Calgary, Canada, a city renowned as "Canada's Energy Capital" due to its abundant energy resources and related industries, Nexen holds a significant position not only in the Canadian market but also in Europe, the Gulf Coast, and Colombia.

In 2012, Nexen reached a significant turning point in its history—its full acquisition by China National Offshore Oil Corporation (CNOOC). This transaction marked Nexen's formal integration into a Chinese state-owned enterprise and opened a new chapter in its global energy market. Today, as a subsidiary of CNOOC, Nexen continues its exploration and development of oil and gas resources worldwide.

This article will delve into Nexen's history, core businesses, technological innovations, environmental protection, and future prospects, providing readers with a comprehensive overview of this multinational energy company.

History of Nexen

Nexen was founded in 1971 as "Nexen Petroleum Ltd." In its early years, Nexen focused primarily on the development of oil and gas resources in Canada. Over time, Nexen expanded its business, venturing into international oil and gas exploration and development.

Nexen has undergone several significant mergers and acquisitions throughout its history. For example, in the late 1980s and early 1990s, Nexen successfully entered the UK North Sea oil and gas market through a series of strategic acquisitions. These acquisitions not only enhanced Nexen's technological capabilities but also enabled it to operate in more challenging deep-water environments.

Entering the 21st century, Nexen continued to seek new growth opportunities globally. Particularly in the Gulf Coast and Colombia, Nexen increased its investment in unconventional oil and gas resources. These initiatives not only solidified Nexen's position in the global energy market but also laid a solid foundation for its future development.

However, Nexen's most well-known major event occurred in 2012. That year, CNOOC completed its full acquisition of Nexen for approximately US$15.1 billion. This acquisition was not only one of the largest overseas mergers and acquisitions by a Chinese company at the time, but also a milestone in Nexen's development. Through this acquisition, Nexen gained stronger financial support and technological security, while also being better integrated into the global energy industry chain.

Nexen's core business

As a diversified energy company, Nexen's core business encompasses multiple stages of oil and gas exploration, development, production, and sales. Specifically, Nexen's main business areas include the following:

• Traditional Oil and Gas Resource Development: Nexen's oil sands project in Alberta, Canada, is an important part of its traditional business. Oil sands are deposits rich in heavy crude oil, and Nexen has successfully achieved efficient utilization of this resource through advanced extraction technologies.
• Offshore Oil and Gas Exploration and Development: Nexen's operations in the UK North Sea began in the early 1990s. Through years of effort, Nexen has become one of the most important oil and gas producers in the region. Furthermore, Nexen has also achieved significant results in its deepwater projects in the US Gulf of Mexico, demonstrating its technological advantages in complex geological conditions.
• Unconventional Oil and Gas Resource Development: In recent years, Nexen has increased its investment in unconventional oil and gas resources such as shale gas. Particularly in Colombia, Nexen has actively participated in the development of multiple shale gas projects, striving to gain a leading position in this emerging field.
• Liquefied Natural Gas (LNG) Business: With the changing global energy demand structure, Nexen has also entered the LNG sector. Through participation in the construction and operation of several large-scale LNG projects, Nexen has further enriched its product portfolio, meeting the needs of different markets.

Nexen's business activities in these areas not only reflect its pursuit of diversified energy products but also its profound understanding of global energy market trends. Through continuous optimization of its business portfolio, Nexen has maintained a competitive edge in the global energy industry.

Nexen's technological innovation

Technological innovation is one of the key factors for Nexen to maintain its competitiveness. As an energy company committed to sustainable development, Nexen has always placed great importance on technological research and development, constantly exploring new technologies to improve resource extraction efficiency, reduce environmental impact, and enhance economic benefits.

In the oil sands extraction sector, Nexen pioneered the use of Steam Assisted Gravity Drainage (SAGD) technology. This technology injects high-temperature steam underground, making previously difficult-to-flow heavy crude oil easier to extract. Compared to traditional open-pit mining methods, SAGD technology not only improves resource recovery rates but also significantly reduces damage to the surface environment.

For offshore oil and gas development, Nexen extensively utilizes 3D seismic exploration technology and advanced drilling equipment. These technologies enable Nexen to more accurately identify potential oil and gas reservoirs and complete drilling operations safely and efficiently under complex geological conditions. Furthermore, Nexen actively employs automated control systems and big data analytics tools to further improve the operational efficiency of its offshore platforms.

In the development of unconventional oil and gas resources, Nexen focuses on the research and application of horizontal well drilling and hydraulic fracturing technologies. Through continuous improvement of these technologies, Nexen has effectively increased the extraction efficiency of resources such as shale gas, while reducing water consumption and waste emissions.

In addition to technological innovation in the specific areas mentioned above, Nexen is also vigorously promoting digital transformation. By introducing cutting-edge technologies such as the Internet of Things, artificial intelligence, and cloud computing, Nexen is building a more intelligent and automated production management system, thereby achieving comprehensive optimization of the entire value chain.

Nexen's environmental protection

As a responsible energy company, Nexen understands the importance of environmental protection and considers it an integral part of its corporate development strategy. Nexen is committed to adhering to the highest standards of environmental practices in all its business activities and striving to minimize its impact on the natural environment.

Nexen has established stringent environmental management policies to ensure that its operations in each project comply with or exceed local laws and regulations. For example, during oil sands extraction, Nexen has taken a series of measures to protect surface vegetation and water quality, including establishing dedicated tailings treatment facilities and implementing land reclamation programs.

Furthermore, Nexen actively participates in carbon reduction initiatives. By optimizing production processes, improving energy efficiency, and investing in clean energy projects, Nexen aims to gradually reduce its greenhouse gas emissions. Notably, Nexen has set a clear carbon neutrality target and is steadily progressing towards it.

Nixon also places great importance on working with the community to advance environmental protection. By funding environmental education programs, supporting local conservation organizations, and organizing public engagement activities, Nixon hopes to raise awareness of environmental issues across society and inspire more people to participate in protecting our planet.

Nexen's Future Outlook

In the face of an increasingly complex global energy market landscape, Nexen will continue to adhere to its innovation-driven development strategy, striving to become a leading global provider of integrated energy solutions. In the coming years, Nexen plans to focus on the following areas:

• Deepening international cooperation: As a subsidiary of CNOOC, Nexen will further strengthen its collaboration with its parent company and other international partners to jointly develop more high-quality energy projects.
• Accelerating Green Transition: Nexen will increase its investment in renewable energy and low-carbon technologies, actively explore new opportunities in areas such as hydrogen energy and energy storage, and strive to diversify its business structure.
• Strengthening digital capabilities: Nexen will continue to drive the digital transformation process, making full use of advanced technologies to improve operational efficiency and service quality, and create greater value for customers.
• Fulfilling social responsibility: Nixon will continue to uphold the concept of sustainable development, strictly abide by all environmental protection regulations, actively participate in community building, and make greater contributions to promoting coordinated economic and social development.

In conclusion, Nexen will leverage its strong technological capabilities, extensive experience, and unwavering strategic direction to maintain its leading position in the global energy market and contribute to achieving the sustainable development goals of humankind.

If you would like to learn more about Nexen, please visit their official website: www.nexencnoocltd.com .