CNOOC Petroleum North America
| Company type | Subsidiary |
|---|---|
| Industry | Oil and gas |
| Predecessor | Canadian Occidental Petroleum (CanOxy), Nexen |
| Founded | 1971 |
| Fate | Acquired by CNOOC Limited in 2013; renamed in 2018 |
| Headquarters | Calgary , Canada |
Area served | Canada, United Kingdom North Sea, United States, West Africa |
Key people | Fang Zhi (CEO as of 2014) |
| Products | Oil, natural gas, liquefied natural gas, electrical power |
| Owner | CNOOC Limited |
| Parent | CNOOC Limited |
CNOOC Petroleum North America ULC, previously known as Nexen, is a Canadian oil and gas enterprise based in Calgary, Alberta.
Originally operating as the Canadian branch of the US-based Occidental Petroleum under the name Canadian Occidental Petroleum (CanOxy), it gained independence in 2000, rebranding as Nexen. In 2013, Hong Kong's CNOOC Limited acquired the company and completed a rebranding process by the end of 2018.
By 2013, the company’s expansion strategy concentrated on oil sands and shale gas developments in western Canada, while maintaining conventional exploration and production activities in the North Sea, offshore regions of West Africa, and deepwater projects in the Gulf of Mexico.
History
Nexen originated in 1971 under the name Canadian Occidental Petroleum (CanOxy), with an initial ownership structure comprising 80% held by Occidental Petroleum, a Los Angeles-based oil firm. Early operations centered on Canadian assets, but throughout the 1980s and 1990s, CanOxy expanded internationally, entering markets such as the Gulf of Mexico, Yemen, and the North Sea. It also augmented its Canadian portfolio during this period.
During the 1990s, CanOxy acquired properties from Wascana Energy Inc., formerly known as SaskOil, which was North America’s first government-owned oil and gas company before its privatization in 1986.
In 2000, CanOxy collaborated with the Ontario Teachers' Pension Plan to repurchase Occidental Petroleum’s shares, thereby becoming an independent entity renamed Nexen. The company then moved its headquarters into the former NOVA Corporation building, now referred to as the Nexen Building.
Acquisition by CNOOC Limited
In July 2012, CNOOC Limited, a prominent subsidiary of China’s state-owned CNOOC based in Beijing, announced intentions to purchase Nexen for C$15.1 billion. The transaction received shareholder approval in September under interim CEO Kevin Reinhart amid extensive public and political scrutiny within Canada. Prime Minister Stephen Harper authorized the acquisition in December 2012 while simultaneously introducing more stringent regulations for future foreign investments in oil sands projects.
The deal was finalized in February 2013, representing China’s largest foreign takeover at that time. Common shareholders were compensated US$27.50 per share; preferred shareholders received CAD$26 plus accumulated dividends. Fang Zhi succeeded Reinhart as CEO in April 2014. By 2015, approximately 14% of Nexen’s workforce had been reduced due to a global decline in oil prices—a decision aligned with industry-wide adjustments despite concerns related to Chinese ownership.
On 31 December 2018, Nexen officially changed its legal name to CNOOC Petroleum North America ULC, with affiliated subsidiaries undergoing similar rebranding. Its American depository receipts remained listed on the TSX, and its parent company continued to be recognized as a foreign reporting issuer in Canada.
As of , following multiple rounds of layoffs amid challenges in Canada’s oil and gas industry, Nexen had "contracted significantly" since its acquisition. That same year, it relocated its headquarters within downtown Calgary from the Nexen Building to The Bow, subleasing eight floors from Cenovus and downsizing office space from roughly 620,000 square feet to around 300,000 square feet.
Energy operations
Nexen maintains assets in several regions including Canada—where it holds a 7.23% interest in Syncrude and participates in the Long Lake project within the Athabasca oil sands—as well as in the UK North Sea, particularly the Buzzard oil field, the United States, and offshore locations in West Africa. Since February 2013, Nexen has overseen roughly $8 billion worth of CNOOC Limited's holdings throughout North and Central America.
Long Lake
Initiated in 2001, the Long Lake project in Athabasca was established as a joint venture equally owned by Nexen and OPTI Canada. The operation employs steam-assisted gravity drainage alongside OPTI's proprietary OrCrude upgrading technology. The facility was designed to produce around 72,000 barrels of bitumen daily, with an upgrade potential of 58,500 barrels of synthetic crude. Proven reserves are estimated at 310 million barrels. By 2017, production levels had reached close to 72,000 barrels of bitumen per day.
The project encountered several difficulties, notably OPTI’s financial distress nearing bankruptcy in 2011, prompting Nexen to increase its stake first to 65% and eventually assume full ownership. The site was also impacted by a significant oil spill in 2015 and suffered a fatal explosion in 2016 that resulted in two casualties and led to the permanent closure of the upgrader facility.
In 2018, Nexen announced plans for a $400 million expansion aimed at resuming production by late 2020.
Marketing
Nexen’s Energy Marketing division is involved in trading both proprietary and third-party crude oil, natural gas, liquefied natural gas, and electrical power.