Description
SWOT ANALYSIS OF NEXEN

Nexen

Parent Company

CNOOC

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

Responsible care ; See the value

We create value by responsibly supplying the energy that fuels USP people’s lives STP

Segment

Corporates and individuals with energy requirements

Target Group

Entities which require natural gas, crude oil and bitumen

Positioning

A global energy leader with an exciting future SWOT Analysis

1. Nexen’s strategic assets in some of the world’s most significant basins- including the UK North Sea, offshore West Africa, United States and Western Canada 2. Substantial conventional O&G acreage in the Golden Eagle development area near Aberdeen 3. Strong liquidity position, combined with strong operating cash netbacks, provides it with the financial flexibility to carry out newer investment programs Strength 4. The company has a workforce of 3000+ employees

1. Increasing operating and production costs can stymie its profitability 2. The company has restricted global operations which means limited Weakness market share growth

1. Acquisition by CNOOC will enhance capital expenditure on Nexen’s assets 2. Tax Breaks from the UK government will help Nexen intensify its fracking operations 3. Potential growth of unconventional oil and gas sources such as shale gas etc, where it is involved in, can boost its financial Opportunity performance

1. Volatility in crude oil or natural gas prices have a material adverse effect on its operations and financial condition 2. Exploratory, production and development risks can increase its operational costs and reduce its profitability 3. Stringent emission standards arising from governmental laws and Threats regulations can adversely impact its operations and reduce revenue Competition

1. Chevron Corporation 2. ExxonMobil Corporation 3.Anadarko Petroleum Corporation Competitors 4. Apache Corporation



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