One day after unveiling a lucrative exploration joint venture (JV) in British Columbia, Nexen Inc. on Wednesday announced that it has inked another partnership agreement for Gulf of Mexico (GOM) leases.

The transaction with China National Offshore Oil Corp. (CNOOC), China’s largest offshore producer, includes a working interest (WI) in up to six of Nexen’s prospective deepwater exploration wells. On Monday the Calgary-based independent said it would sell a 40% stake in around 300,000 net acres in northeastern British Columbia to a consortium led by Japanese exploration giant Inpex Corp. (see Daily GPI, Nov. 30).

Among the prospects to be included in the CNOOC deal are the Kakuna well, now being drilled as well as the Angel Fire well, which is slated to spud in 2012. CNOOC, with 20% WI, would participate in those two wells and the Cypress prospect. It also may participate in three other exploration wells with 10-25% WI. The JV doesn’t include any stake in the Appomattox discovery, in which Nexen holds a 20% stake, or related Norphlet formation prospects.

“This agreement is the culmination of an extensive process to recognize some of the value our exploration team has created in the Gulf of Mexico,” said Nexen CEO Marvin Romanow. “We are seeing a gradual return to normal activity in the Gulf and this deal is a reflection of the fact that the basin remains a very exciting one for deepwater exploration prospects. Nexen’s strategy in the Gulf of Mexico is to mature prospects at a high working interest, and then utilize joint venture agreements like this one to reduce our interest to our target level of 25-30%, while recognizing the potential of our exploration portfolio.”

Drilling on the Kakuna well in Green Canyon Block 504 is in progress. The Angel Fire well is in Green Canyon Block 327.

Nexen currently produces around 20,000 boe/d in the GOM and is one of the largest deepwater leaseholders.

CNOOC also partners with Nexen on the Long Lake project in Alberta’s Athabasca oilsands. In addition, the Chinese producer has stakes in several North American oil and gas prospects, including two unconventional exploration JVs with Chesapeake Energy Corp. (see Daily GPI, Feb. 3; Oct. 12, 2010).

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