The Canada-based energy firm now holds a 60% operated interest in the joint venture lands, which are located in the Cordova, Horn River, and Liard basins.
INPEX Gas British Columbia (IGBC), jointly established by INPEX and JGC Corporation, owns the remaining 40% interest.
Upon closing, Nexen will receive $821m in cash, consisting of the initial cash payment and IGBC’s share of costs since the effective date of the transaction. The remaining carry amount is about $106m.
Nexen interim president and chief executive Kevin Reinhart said this is the beginning of a valuable long-term strategic partnership.
The two companies are continuing with completion activities on an 18-well pad in the Horn River and expanding in-field facilities.
IGBC and Nexen plan to develop this resource as economic conditions permit; also they agreed to jointly investigate the feasibility of LNG export opportunities.
