CALGARY, ALBERTA--(Jan. 4, 2008) - Nexen Inc. announces the regular quarterly interest payment on its 7.35% Subordinated Notes due 2043 of US$0.459375 per note, payable February 1, 2008, to note holders of record on January 15, 2008.

The notes are listed for trading on the TSX: NXY.PR.U and the NYSE: NXYPRB.

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, 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 and leadership in ethics, integrity and environmental protection.

Contact Info

Sean Noe, P.Eng
Analyst, Investor Relations
(403) 699-4494
or
Lavonne Zdunich, CA
Analyst, Investor Relations
(403) 699-5821
or
Nexen Inc.
801 - 7th Ave SW
Calgary, Alberta, Canada T2P 3P7
Website: www.nexeninc.com