By an OGJ Online Correspondent
CALGARY, Feb. 19�Nexen Inc., Calgary, formerly Canadian Occidental Petroleum Ltd., reports doubled fourth quarter profits to $147 million (Can.) from $72 million for the same period in 1999.
Cash flow increased 63% in the fourth quarter to a record $439 million from the same period in 1999.
It said profits as a whole for 2000 increased sixfold to a record $602 million from $100 million in 1999, boosted by higher prices and increased oil and gas production. Cash flow for 2000 doubled to $1.57 billion from $780 million in 1999.
Nexen CEO Victor Zaleschuk said the strongest oil and gas prices in a decade were a major factor in the strong financial results. But he said growing production volumes, exploration success, and low unit depletion rates as a result of low finding and development costs also contributed to the profit increase.
Nexen has substantial oil production in Yemen and western Canada, as well as interests in the Gulf of Mexico, Australia, Colombia, and Nigeria. It is also a partner in the Syncrude Canada Ltd. oil sands consortium in northern Alberta.
The company said it expects oil production to average 220,000 b/d in 2001, up 5% from 2000. It forecasts a 14% increase in gas production to 310 MMcfd.
Nexen plans $1.3 billion in capital spending this year, $770 million on reserves development and the balance on exploration. Key exploration areas will include the Gulf of Mexico, Nigeria, and Colombia.