November 30, 2011 / 12:16 PM / 8 years ago

UPDATE 1-Nexen, CNOOC form Gulf of Mexico JV

Nov 30 (Reuters) - Nexen Inc formed a joint venture with China’s top offshore oil company CNOOC Ltd in the Gulf of Mexico on Wednesday, a day after the Canadian oil company sold a 40 percent stake in some of its gas assets in British Columbia.

CNOOC will have a 20 percent working interest in the Kakuna, Angel Fire, and Cypress deepwater exploration wells.

The Chinese company may also get a 10-25 percent working interest in three other exploration wells.

Other terms of the deal were not disclosed.

Drilling at the Kakuna well is currently in progress and Nexen expects to spud the Angel Fire well in 2012, the company said in a statement.

In July, CNOOC had bought Nexen’s struggling partner Opti Canada Inc for $34 million and $2 billion in debt, bolstering its position in the Canadian oil sands.

CNOOC now has a 35 percent stake in the troubled Long Lake oil sands project, the rest of which is owned by Nexen.

Nexen, which currently produces about 20,000 barrels of oil equivalent per day (boepd) in the Gulf of Mexico, said on Tuesday it will sell 40 percent of its British Columbia shale gas holdings to a group led by Japan’s Inpex Corp for C$700 million.

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