Nexen acquires interest in Campos basin exploration block

Nexen Inc. reported that it has farmed into Block BC-20, an exploration license 100 km off Brazil in the Campos basin. The Calgary-based firm acquired a 20% interest in the 2,060 sq km block.

Aug. 19, 2002

By OGJ editors

HOUSTON, Aug. 19 -- Nexen Inc. reported that it has farmed into Block BC-20, an exploration license 100 km off Brazil in the Campos basin. The Calgary-based firm acquired a 20% interest in the 2,060 sq km block; other block partners are operator Petroleo Brasileiro SA 50% and ChevronTexaco Corp. 30%. Terms of the farmin are subject to approval by Brazil's National Petroleum Agency (ANP).

"Block BC-20 offers several 3D seismically defined exploration prospects on trend with recent discoveries on adjacent blocks," Nexen noted. The first well, to be spudded in the third quarter, is part of a 2-well drilling program to test a structure in about 1,700 m of water.

The company's Latin America strategy is to "target material, moderate risk plays in proven oil-prone basins" where there are a number of opportunities to follow up on discovery wells, the company said. "Attractive fiscal terms, regular bid rounds, and a large inventory of industry farm-in opportunities ensure access to the resource," Nexen said.