Nexen plans record capital expenditures for 2001

Nexen Inc., Calgary, the former Canadian Occidental Petroleum Ltd., plans record spending of $1.3 billion (Can.) in 2001, a 38% increase over 2000.

Pres. and CEO Victor Zaleschuk said the spending plans have a number of objectives, including maximizing value from core operations; accelerating appraisal of finds in the Gulf of Mexico, Nigeria, Colombia, and the in-situ bitumen resource in Canada; and funding Nexen's largest yet exploration program.

The company�s development budget will increase by 35% to $890 million and the exploration budget by 43% to $430 million.

Nexen expects record production in 2001 of 272,000 boe/d, compared with 256,000 boe/d in 2000. Oil production is expected to grow 5% to 220,000 b/d and gas production would increase by 14% to over 310 Mmcfd.

The company is basing near term growth on its core operations in Canada, the shallow Gulf of Mexico, and Yemen. Nexen will spend more than $480 million on Canadian operations this year, including its interest in the Syncrude Canada Ltd. oil sands operation. It plans 450 development wells and 130 exploration wells in western Canada.