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7 Pages

Nexen sells a 40% stake in its northeast British Columbia gas assets to INPEX and JGC for US$680 million

Nexen sells a 40% stake in its northeast British Columbia gas assets to INPEX and JGC for US$680 million

Report summary

Nexen has announced a strategic partnership with INPEX and JGC Corporation for its northeastern British Columbia shale properties. The Japanese players will acquire a 40% interest in Nexen's Horn River, Cordova Embayment, and Liard Basin lands for Cdn$700 million (US$679 million), half of which will be in the form of a cost carry. As part of the venture, the companies will look into the feasibility of LNG export options, joining a growing number of players evaluating, and competing ...

What's included?

This report includes 1 file(s)

  • Nexen sells a 40% stake in its northeast British Columbia gas assets to INPEX and JGC for US$680 million PDF - 410.79 KB 7 Pages, 6 Tables, 2 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Horn River Basin
    • Cordova Embayment
    • Liard Basin
  • Deal analysis
    • Dilly Creek valuation
    • Reported unit metrics
    • Inferred Cordova and Liard unit metrics
    • LNG potential
  • Strategic rationale
    • Nexen
    • INPEX
    • JGC Corporation
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Wood Mackenzie Dilly Creek valuation sensitivity to well IP, EUR and future drilling forecast
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Wood Mackenzie forecast - Japan spot price vs. Henry Hub
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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