CNOOC Petroleum North America ULC
 Former logo | |
Formerly | CNOOC Nexen (2013-2018); Nexen (2000-2013); Canadian Occidental (1971-2000) |
|---|---|
| Subsidiary | |
| Industry | Oil and gas, energy |
| Predecessor | Saskatchewan Oil & Gas Corporation  |
| Founded | July 12, 1971 |
| Headquarters | , Canada |
Key people | Fang Zhi [1] (CEO) Li Fanrong (Chairman) |
| Revenue | $6.7 billion CAD (2012)[2] |
| $333 million CAD (2012)[2] | |
| Total equity | $8.8 billion CAD (2012)[3] |
Number of employees | 3,000 (2013)[3] |
| Parent | CNOOC Limited |
| Website | intl |
CNOOC Petroleum North America ULC, formerly known as Nexen, is a Chinese-owned oil and gas company based in Calgary, Alberta. On 25 February 2013, Nexen became a wholly owned subsidiary of Hong Kong-based CNOOC Limited. From 25 February 2013 through 31 December 2018 (inclusive), it continued to operate with the 'Nexen name. Following both a legal change of name in its jurisdiction, British Columbia, on 31 December 2018, the 'Nexen name disappeared from both legal and practical perspectives, and it became known as CNOOC Petroleum North America ULC henceforth.[4] Simultaneously and with the same date of effectiveness, related 'Nexen subsidiaries and affiliates changed both their legal and branding names. Its American depository receipts remain concurrently traded on the TSX and its ultimate parent company, CNOOC Limited, remains a foreign reporting issuer in Canada.
It has three growth strategies: oil sands and shale gas in western Canada as well as conventional exploration and development primarily in the North Sea, offshore in West Africa, and deepwater exploration in the Gulf of Mexico.[5]
History[edit]
Nexen started in 1971 as Canadian Occidental Petroleum (CanOxy), and was 80% owned by Occidental Petroleum, an oil company based in Los Angeles. In the first decade of its existence, CanOxy was fairly Canadian-oriented. During the 1980s and 1990s they increased their international holdings, first in the Gulf of Mexico, then into places like Yemen and the North Sea. Further Canadian assets were also acquired.
In the 1990s, CanOxy purchased the assets of what once was the first state-owned oil and gas company in North America; Wascana Energy Inc., formerly known as SaskOil. Founded by Saskatchewan New Democratic Party Premier Allan Blakeney in 1973, Saskoil was privatized in 1986 by Progressive Conservative Premier Grant Devine.[6]
In 2000, the company partnered with the Ontario Teachers' Pension Plan to buy back Occidental Petroleum's shares.[7] The newly-independent company changed its name to 'Nexen and moved into the former headquarters of NOVA Corporation, what is now known as the Nexen Building.[8]
Acquisition by CNOOC Limited[edit]
CNOOC Limited, a major subsidiary of CNOOC headquartered in Beijing, acquired Nexen on February 25, 2013, Nexen. Nexen's common stock shareholders received cash proceeds of US$27.50, without interest, whereas preferred stock shareholders of Nexen received cash proceeds of CAD$26, plus accrued and unpaid dividends without interest.[5]
In November 2018, Nexen announced it would be moving from the Nexen Building to The Bow, subleasing 8 floors from Cenovus.[9]
Energy operations[edit]
Nexen has interests in Canada (including the Athabasca oil sands through a 7.23% ownership of Syncrude and the Long Lake project), the UK North Sea, the United States, and offshore West Africa. Beginning in February 2013, Nexen took accountability for managing approximately $8 billion in CNOOC Limited assets located throughout North and Central America.
Long Lake[edit]
The Long Lake project in the Athabasca Oil Sands was initiated in 2001, as a 50/50 partnership between Nexen and OPTI Canada. It was started in order to develop the Long Lake site using steam-assisted gravity drainage and OPTI's OrCrude process for on-site upgrading. Production capacity at Long Lake was estimated 72,000 barrels per day (11,400 m3/d) of bitumen per day which could be upgraded to 58,500 barrels per day (9,300 m3/d) of synthetic crude. The proved reserves at the Long Lake site are 310,000,000 bbls.[10] In 2017, the site produced approximately 41,000 barrels per day (6,500 m3/d) of bitumen.[11]
The Long Lake site has had a troubled history, including OPTI's near-bankruptcy in 2011 (with Nexen growing its ownership stake to 65% and eventually 100%),[12] a significant oil spill in 2015,[13] and an explosion in 2016 that resulted in two deaths and the permanent shutdown of the upgrader.[11][14]
In 2018, Nexen announced a $400 million expansion project, which is expected to begin production in late 2020.[11]
Marketing[edit]
Nexen also has an Energy Marketing division that trades and markets proprietary and third-party crude oil, natural gas, liquid natural gas, and electrical power.
See also[edit]
References[edit]
- ^ Cattaneo, Claudia. "Nexen chief Kevin Reinhart to be replaced by CNOOC executive Fang Zhi". Financial Post. Retrieved 23 May 2014.
- ^ a b "Nexen Inc. financials". Google Finance Canada. Retrieved 26 April 2010.
- ^ a b "Nexen Inc. (Public, TSE:NXY)". Google Finance Canada. Retrieved 26 April 2010.
- ^ "Certificate of Change of Name". 31 December 2018.
- ^ a b "Nexen Announces Completion of Acquisition by CNOOC Limited". Yahoo! Finance. 25 February 2013. Archived from the original on 21 October 2013. Retrieved 17 January 2017.
- ^ "SASKOIL". Encyclopedia of Saskatchewan University of Regina. Retrieved 18 June 2012.
- ^ "Canadian Occidental changing name to Nexen Inc". The Globe and Mail. 28 September 2000. Retrieved 26 January 2020.
- ^ Jang, Brent (30 September 2000). "CanOxy must grin and bear with Nexen". The Globe and Mail. Retrieved 26 January 2020.
- ^ Hudes, Sammy (1 October 2018). "Nexen moving into Bow Tower, subleasing eight floors from Cenovus". The Calgary Herald. Retrieved 26 January 2020.
- ^ OPTI Canada Inc. (17 December 2008). "OPTI Outlines Capital Expenditure Plans, Divests Long Lake Interest". News Release. RigZone. Retrieved 2 March 2009.
- ^ a b c "Nexen Energy announces $400-million expansion of Long Lake oilsands project". CBC News. The Canadian Press. 20 June 2018. Retrieved 26 January 2020.
- ^ "Opti shares plunge". CBC News. 1 February 2011. Retrieved 4 February 2011.
- ^ "Nexen fined $750,000 over huge Long Lake pipeline spill near Fort McMurray". CBC News. 13 July 2016. Retrieved 26 January 2020.
- ^ Malbeuf, Jamie (18 April 2019). "Nexen fined in oilsands explosion that killed 2 workers". CBC News. Retrieved 26 January 2020.
Coordinates: 51°2′47″N 114°4′47″W / 51.04639°N 114.07972°W
