The company will sell a 40% working interest in these assets located in the Horn River, Cordova and Liard basins for $700m, with 50% upfront and a 50% capital carry.
Upon closing of the transaction, Nexen will hold a 60% interest in the joint venture lands and remain the operator.
The remaining 40% interest will be owned through Inpex Gas British Columbia, which is jointly established by Inpex (82%) and engineering contractor JGC Corp (18%).
The transaction is expected to close in the first quarter of 2012 and following the closing of the JV agreement, the parties will also jointly investigate the feasibility of a potential downstream project including LNG exports.
