Nexen Announces 30-day Extension of the Arrangement Agreement Outside Date

Sun Jan 27, 2013 5:28pm EST

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CALGARY,  Jan. 27, 2013  /PRNewswire/ - Nexen Inc. ("Nexen") (TSX, NYSE: NXY)
 announced today that CNOOC Limited and Nexen Inc. have mutually agreed
 to extend the "Outside Date" of the Arrangement Agreement by 30 days to
  March 2, 2013.

The Outside Date was originally  January 31, 2013. Either party may,
 except in certain circumstances, extend the Outside Date from time to
 time if the required regulatory approvals have not been obtained,
 provided that in aggregate such extensions shall not exceed 75 business
 days from  January 31, 2013.

In connection with the extension, Nexen also announced that it will
 postpone the release of its 2012 fourth quarter and annual operating
 and financial results.

Completion of the Agreement remains subject to the receipt of  United
 States  regulatory approval and the satisfaction or waiver of other
 customary closing conditions. Key regulatory approvals have been
 received from  Canada, the  United Kingdom, the European Union and  the
 People's Republic of China.

About Nexen

Nexen Inc. is a Canadian-based global energy company, listed on the
  Toronto  and  New York  stock exchanges under the symbol NXY. Nexen is
 focused on three growth strategies: oil sands and shale gas in western
  Canada  and conventional exploration and development primarily in the
 North Sea, offshore  West Africa  and deepwater  Gulf of Mexico. Nexen
 adds value for shareholders through successful full-cycle oil and gas
 exploration and development, and leadership in ethics, integrity,
 governance and environmental stewardship.

Forward-Looking Statements

Certain statements in this Release constitute "forward-looking
 statements" (within the meaning of the United States Private Securities
 Litigation Reform Act of 1995, as amended) or "forward-looking
 information" (within the meaning of applicable Canadian securities
 legislation). Such statements or information (together "forward-looking
 statements") are generally identifiable by the forward-looking
 terminology used such as "anticipate", "believe", "intend", "plan",
 "expect", "estimate", "budget", "outlook", "forecast" or other similar
 words. Any statements as to possible timing and anticipated receipt of
 required regulatory approvals for the arrangement with CNOOC Limited;
 the ability of the parties to satisfy the conditions to, and to
 complete, the transaction; the anticipated timing of the closing of the
 transaction; and, changes in any of the foregoing are forward-looking

All of the forward-looking statements in this Release are qualified by
 the assumptions that are stated or inherent in such forward-looking
 statements. Although we believe that these assumptions are reasonable
 based on the information available to us on the date such assumptions
 were made, this list is not exhaustive of the factors that may affect
 any of the forward-looking statements and the reader should not place
 an undue reliance on these assumptions and such forward-looking
 statements. Nexen undertakes no obligation to update publicly or revise
 any forward-looking statements or information, whether as a result of
 new information, future events or otherwise, unless so required by
 applicable securities laws. The key assumptions that have been made in
 connection with the forward-looking statements include the following:
 the ability of the parties to the  July 23, 2012  Arrangement Agreement
 to receive, in a timely manner and on satisfactory terms, the necessary
 regulatory, and other third party approvals, including but not limited
 to the receipt of applicable foreign investment approval required in
  the United States   and the required approvals from other foreign
 jurisdictions; and, the ability of the parties to the Arrangement
 Agreement to satisfy, in a timely manner, the conditions to the closing
 of the transaction.  

Forward-looking statements are subject to known and unknown risks and
 uncertainties and other factors, many of which are beyond our control
 and each of which contributes to the possibility that our
 forward-looking statements will not occur or that actual results and
 achievements may differ materially from those expressed or implied by
 such statements. Such factors include, among others: the possible
 failure of Nexen and CNOOC Limited to obtain necessary regulatory and
 other third party approvals, including those noted above, or to
 otherwise satisfy the conditions to the completion of the transaction,
 in a timely manner or at all; if the transaction is not completed and
 Nexen continues as an independent entity, there are risks that the
 announcement of the transaction and the dedication of substantial
 resources of Nexen to the completion of the transaction could have an
 impact on Nexen's current business relationships (including with future
 and prospective employees, customers, distributors, suppliers and
 partners) and could have a material adverse effect on the current and
 future operations, financial condition and prospects of Nexen; the
 possible failure of Nexen to comply with the terms of the Arrangement
 Agreement may result in Nexen being required to pay a fee to CNOOC
 Limited, the  result of which could have a material adverse effect on
 Nexen's financial position and results of operations and its ability to
 fund growth prospects and current operations; and other factors, many
 of which are beyond our control. Additional information on these and
 other factors that could affect the completion of the transaction are
 included in the information circular and proxy statement of Nexen dated
  August 16, 2012, which has been filed with the applicable securities
 regulatory authorities and may be accessed through the SEDAR website
(, the SEC's website ( and Nexen's website
(  impact of any one risk, uncertainty or factor on a
 forward-looking statement is not determinable with certainty as these
 factors are interdependent, and management's future course of action
 would depend on our assessment of all information at that time.

SOURCE  Nexen Inc.

For investor relations inquiries, please contact:

Janet Craig

Vice President, Investor Relations

(403) 699-4230

For media and general inquiries, please contact:

Pierre Alvarez

Vice President, Corporate Relations

(403) 699-5202

801 - 7


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Calgary, Alberta, Canada T2P 3P7

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