Nexen: From a Canadian energy giant to a subsidiary of CNOOC

Nexen Inc. is an oil and gas company with an important position in the international energy field. Since its establishment in 1971, Nexen has continuously expanded its business footprint around the world and gradually developed into a comprehensive energy company with oil and gas exploration, development and production as its core. Nexen's headquarters is located in Calgary, Canada, a city known as the "Energy Capital of Canada" for its rich energy resources and related industries. Nexen not only occupies an important position in the Canadian domestic market, but also has extensive business activities in Europe, the Gulf of Mexico, and Colombia.

In 2012, Nexen reached an important turning point in its history - it was wholly acquired by China National Offshore Oil Corporation (CNOOC Limited). This transaction marked Nexen's official entry into China's state-owned enterprises and opened a new chapter in the global energy market. Today, as a subsidiary of CNOOC, Nexen continues to explore and develop oil and gas resources around the world.

This article will delve into the history, core business, technological innovation, environmental protection and future prospects of Nexen, providing readers with a comprehensive picture of this multinational energy company.

History of Nexen

Nexen was founded in 1971 and was originally named "Nexen Petroleum Ltd." In its early days, Nexen focused on the development of oil and gas resources in Canada. Over time, Nexen gradually expanded its business scope and began to engage in oil and gas resource exploration and development in the international market.

Nexen has experienced many important mergers and acquisitions and restructuring activities in its development history. For example, in the late 1980s and early 1990s, Nexen successfully entered the oil and gas market in the North Sea region of the United Kingdom through a series of strategic acquisitions. These acquisitions not only enhanced Nexen's technical strength, but also enabled it to operate in more challenging deepwater environments.

After entering the 21st century, Nexen continued to seek new growth opportunities around the world. In particular, Nexen increased its investment in unconventional oil and gas resources in the Gulf of Mexico and Columbia in the United States. These measures not only consolidated Nexen's position in the global energy market, but also laid a solid foundation for its subsequent development.

However, the most well-known major event of Nexen occurred in 2012. In that year, CNOOC completed the full acquisition of Nexen for approximately US$15.1 billion. This acquisition was not only one of the largest overseas mergers and acquisitions by Chinese companies at the time, but also a milestone in the development of Nexen. Through this acquisition, Nexen obtained stronger financial support and technical guarantees, and was also able to better integrate into the global energy industry chain.

Nexen's core business

As a comprehensive energy company, Nexen's core business covers multiple aspects such as oil and natural gas exploration, development, production and sales. Specifically, Nexen's main business areas include the following aspects:

• Traditional oil and gas resource development: Nexen's oil sands project in Alberta, Canada is an important part of its traditional business. Oil sands are a type of mineral deposit rich in heavy crude oil. Nexen has successfully achieved efficient utilization of this resource through advanced mining technology.
• Offshore oil and gas exploration and development: Nexen's business in the UK North Sea began in the early 1990s. Through years of hard work, Nexen has become one of the most important oil and gas producers in the region. In addition, Nexen's deepwater projects in the Gulf of Mexico in the United States have also achieved remarkable results, demonstrating its technical advantages in complex geological conditions.
• Development of unconventional oil and gas resources: In recent years, Nexen has increased its investment in unconventional oil and gas resources such as shale gas. In particular, in Colombia, Nexen has actively participated in the development of multiple shale gas projects, striving to take a leading position in this emerging field.
• Liquefied Natural Gas (LNG) Business: With the changes in the global energy demand structure, Nexen has also begun to get involved in the LNG field. By participating in the construction and operation of some large-scale LNG projects, Nexen has further enriched its product portfolio and met the needs of different markets.

Nexen's business activities in the above-mentioned fields not only reflect its pursuit of diversified energy products, but also reflect its deep understanding of the development trend of the global energy market. By continuously optimizing its business layout, Nexen is able to maintain its competitive advantage in the global energy industry.

Nexen's Technological Innovation

Technological innovation is one of the key factors for Nexen to maintain its competitiveness. As an energy company committed to sustainable development, Nexen has always placed technological research and development in an important position, constantly exploring new technologies to improve resource extraction efficiency, reduce environmental impact and enhance economic benefits.

In the field of oil sand mining, Nixon was the first to adopt steam-assisted gravity drainage (SAGD) technology. This technology injects high-temperature steam into the ground, making it easier to extract heavy crude oil that is difficult to flow. Compared with traditional open-pit mining methods, SAGD technology not only improves resource recovery rates, but also significantly reduces damage to the surface environment.

For offshore oil and gas development, Nixon has widely applied 3D seismic exploration technology and advanced drilling equipment. The application of these technologies enables Nixon to more accurately identify potential oil and gas reservoirs and complete drilling operations safely and efficiently under complex geological conditions. In addition, Nixon has also actively adopted automated control systems and big data analysis tools to further improve the operational efficiency of its offshore platforms.

In the development of unconventional oil and gas resources, Nixon focuses on the research, development and application of horizontal well drilling and hydraulic fracturing technologies. By continuously improving these technologies, Nixon has effectively improved the extraction efficiency of shale gas and other resources, while reducing water consumption and waste emissions.

In addition to technological innovation in the above specific areas, Nexen is also vigorously promoting digital transformation. By introducing cutting-edge technologies such as the Internet of Things, artificial intelligence and cloud computing, Nexen is building a more intelligent and automated production management system to achieve comprehensive optimization of the entire value chain.

Environmental Protection of Nexen

As a responsible energy company, Nexen is fully aware of the importance of environmental protection and regards it as an important part of its corporate development strategy. Nexen is committed to following the highest standards of environmental protection practices in all its business activities and strives to reduce the impact on the natural environment.

Nexen has established strict environmental management policies to ensure that its operations in each project meet or even exceed the requirements of local laws and regulations. For example, during oil sands mining, Nexen has taken a series of measures to protect surface vegetation and water quality, including building dedicated tailings treatment facilities and implementing land reclamation plans.

In addition, Nexen is also actively involved in carbon emission reduction actions. By optimizing production processes, improving energy efficiency and investing in clean energy projects, Nexen aims to gradually reduce its greenhouse gas emissions. It is worth mentioning that Nexen has set a clear carbon neutrality goal and is moving steadily towards this goal.

Nixon also attaches great importance to cooperation with the community to jointly promote environmental protection. By funding environmental education projects, supporting local ecological protection organizations and conducting public participation activities, Nixon hopes to enhance the awareness of environmental issues among all sectors of society and inspire more people to participate in the action of protecting our home planet.

Future Prospects of Nexen

Faced with the increasingly complex global energy market, Nexen will continue to adhere to the innovation-driven development strategy and strive to become a leading global provider of integrated energy solutions. In the next few years, Nexen plans to focus on the following areas:

• Deepen international cooperation: As a subsidiary of CNOOC, Nexen will further strengthen its collaboration with its parent company and other international partners to jointly develop more high-quality energy projects.
• Accelerate green transformation: Nexen will increase investment in renewable energy and low-carbon technologies, actively explore new opportunities in hydrogen energy, energy storage and other fields, and strive to diversify its business structure.
• Strengthening digital capabilities: Nexen will continue to promote the digital transformation process, make full use of advanced technologies to improve operational efficiency and service quality, and create greater value for customers.
• Fulfilling social responsibilities: Nexen will continue to uphold the concept of sustainable development, strictly abide by various environmental protection laws and regulations, actively participate in community construction, and make greater contributions to promoting the coordinated development of the economy and society.

In short, with its strong technical strength, rich experience and firm strategic direction, Nixon will continue to maintain its leading position in the future global energy market and contribute to the realization of the sustainable development goals of human society.

If you want to know more about Nexen Corporation, please visit its official website: www.nexencnoocltd.com .