CALGARY, Nov. 15 /PRNewswire-FirstCall/ - Nexen Inc. has commissioned the
expansion of its Brandon sodium chlorate plant. The expansion increases sodium
chlorate production by 65,000 tonnes per year, raising the annual capacity of
the plant to over 260,000 tonnes. Brandon is now the largest sodium chlorate
plant in the world, and we are one of the largest producers of sodium chlorate
in North America.
    Production from the expansion commenced ahead of schedule on October 21,
2004. We also reached full production capacity sooner than anticipated.
    "Our business model focuses on improving margins by reducing costs and
expanding our global market share," said Charlie Fischer, Nexen's President
and CEO. "The Brandon plant is the lowest cost plant in North America and one
of the lowest cost plants in the world. The increased size of the plant should
lower our overall operating costs, leading to improved margins and
profitability."
    The chemicals division is a major producer of sodium chlorate, chlorine,
muriatic acid, and caustic soda. These products are used in applications
including pulp and paper processing, manufacture of building and consumer
products, and water purification. We operate seven production sites in North
and South America as well as a solution blending facility in the United
States.

    Nexen Inc. is an independent, Canadian-based global energy and chemicals
company, listed on the Toronto and New York stock exchanges under the symbol
NXY. We are uniquely positioned for growth in the UK North Sea, the deep-water
Gulf of Mexico, the Athabasca oil sands of Alberta, the Middle East and
offshore West Africa. We add value for shareholders through successful full-
cycle oil and gas exploration and development, a growing industrial bleaching
chemicals business, and leadership in ethics, integrity and environmental
protection.

    FORWARD LOOKING STATEMENTS

    Certain statements in this report constitute "forward-looking statements"
within the meaning of the United States Private Securities Litigation Reform
Act of 1995, Section 21E of the United States Securities Exchange Act of 1934,
as amended, and Section 27A of the United States Securities Act of 1933, as
amended. Such statements are generally identifiable by the terminology used
such as "intend", "plan", "expect", "estimate", "budget", "outlook" or other
similar words.
    The forward-looking statements are subject to known and unknown risks and
uncertainties and other factors which may cause actual results, levels of
activity and achievements to differ materially from those expressed or implied
by such statements. Such factors include, among others: market prices for oil
and gas and chemicals products; the ability to explore, develop, produce and
transport crude oil and natural gas to markets; the results of exploration and
development drilling and related activities; foreign-currency exchange rates;
economic conditions in the countries and regions where Nexen carries on
business; actions by governmental authorities including increases in taxes,
changes in environmental and other laws and regulations; renegotiations of
contracts; and political uncertainty, including actions by insurgent or other
armed groups or other conflict. The impact of any one factor on a particular
forward-looking statement is not determinable with certainty as such factors
are interdependent upon other factors, and management's course of action would
depend on its assessment of the future considering all information then
available. Any statements as to possible commerciality, development plans,
capacity expansions, drilling of new wells, ultimate recoverability of
reserves, future production rates, cash flows and changes in any of the
foregoing are forward-looking statements.
    Although we believe that the expectations conveyed by the forward-looking
statements are reasonable based on information available to us on the date
such forward-looking statements were made, no assurances can be given as to
future results, levels of activity and achievements. Readers should also refer
to Items 7 and 7A in our 2003 Annual Report on Form 10-K for further
discussion of the risk factors.

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