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Nexen announces preliminary results of arbitration of block 51, Yemen dispute


Published Apr 12, 2006
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Nexen Inc. announced that the International Court of Arbitration of the International Chamber of Commerce released its Partial Award in a dispute regarding two small areas (the Heijah/Tawila Extension Lands) of the Nexen operated Block 51 in Yemen.

The Award held that Nexen had breached an obligation to offer a subsidiary of Occidental Petroleum Corporation the right to acquire a 50% interest in these areas and that Occidental is entitled to monetary damages.

Damages will be determined during a second and final phase of the arbitration. The amount of damages cannot be reasonably estimated at this time. Resolution of this matter is not expected to have a material adverse effect on our liquidity, consolidated financial position or results of operations.

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY.




   

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