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                                                             [LOGO - NEXEN INC.]



                           NEXEN INC. 801-7TH AVE SW CALGARY, AB CANADA  T2P 3P7

                                 T 403 699.4000  F 403 699.5776 www.nexeninc.com







MEDIA RELEASE



                                                           For immediate release





                        NEXEN ANNOUNCES YEAR-END RESERVES







CALGARY, ALBERTA, FEBRUARY 3, 2004 - Nexen Inc. added 111 million equivalent

barrels (boe) of proved reserves before revisions in 2003. These additions

replaced 113% of our production of 98 million boe, at finding and development

costs of $11.64 per boe. Significant proved reserves were added in the U.S. Gulf

of Mexico, Yemen and Syncrude. On a proved plus probable basis before revisions,

we replaced almost 500% of our production, adding significant new probable

reserves for our Long Lake Synthetic Crude Oil project in Canada and for

discoveries in Yemen and offshore West Africa.



Following our annual evaluation, we reduced the estimate of our proved reserves

by 67 million boe. This is 8% of our total world-wide reserves and includes a

reduction of 60 million boe to our conventional proved reserves in Canada. The

Canadian revisions are expected to result in a non-cash, after-tax impairment

charge of approximately $175 million ($1.40 per share) in the fourth quarter of

2003. Over 80% of this charge relates to conventional heavy oil reserves. Our

future depletion rate in Canada is expected to decrease by approximately 5% as a

result of this charge. A detailed analysis of the change in our reserves is

included later in this release.



We use the successful efforts method to account for our oil and gas operations.

This method is more conservative than full-cost accounting as impairment is

determined at the property level rather than the country level. At the country

level, no impairment charge would have been required. The future estimated cash

flow from our total conventional Canadian assets is approximately 2.5 times

their related carrying value.



After revisions, our company-wide cost to find and develop proved reserves was

$29.34 per boe in 2003, and our reserve replacement cost was $29.92 per boe.

Over the past five years, our reserve replacement cost after revisions has

averaged $9.06 per boe.



"These revisions have no impact on our production guidance for 2004," said

Charlie Fischer, Nexen's President and Chief Executive Officer. "Our Canadian

conventional assets have significant remaining economic value and we will

continue to manage them to maximize that value."



RESERVES SUMMARY



Our proved reserves are estimated according to U.S. Securities and Exchange

Commission guidelines based upon year-end constant prices. Our long-term

practice has been to internally evaluate all of our reserves and to have at

least 80% of our proved reserves audited by independent qualified consultants

each year. Our reserves are also reviewed and approved by our Board of

Directors.



"Our strategy is to build our position in new basins where we have significant

room for long-term growth," said Fischer. "The majority of our reserve additions

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