Usan field development plan approved

Offshore staff

ALBERTA, Canada -- Nexen has received approvals to proceed with development of the Usan field, offshore Nigeria.

The Usan field is expected to come onstream approximately four years from the award of major contracts. Peak production is expected to be 180,000 b/d. Associated gas will be re-injected into the reservoir.

Nexen also announced that the government has approved the conversion of Oil Prospecting License (OPL) 222 into two Oil Mining Leases (OMLs 138 and 139), each covering half of the original area of OPL 222. The Usan field development is located in OML 138 and is covered by the original production sharing contract for OPL 222 issued in 1993.

Nexen has a 20% working interest in exploration and development along with Elf Petroleum Nigeria (20% and operator), Chevron Petroleum Nigeria (30%), and Esso Exploration and Production Nigeria (30%).

02/28/2008