Nexen, Inpex to develop British Columbia assets

Nexen is to enter a strategic partnership with a consortium led by Japanese firm Inpex to develop shale gas assets in Horn River and the Cordova and Liard basins in north-east British Columbia, Canada.

The firm will sell a 40% working interest in the assets for a total value of $700m and will remain their operator.

Horn River and the Cordova basin are estimated to contain 4-15tcf of recoverable contingent resource, while the Liard basin contains 5-23tcf of prospective resources.

The partnership will proceed with the appraisal and development of the resource, depending on economic conditions, and will jointly investigate the feasibility of a potential downstream project including LNG exports.