On February 25, 2013, CNOOC Limited acquired Nexen Inc. Accordingly, the following statements pertain only to dividends paid before February 25, 2013.
Eligible Dividends for Canadian Tax Purposes:
Unless otherwise indicated in writing or on this website at or before the time a dividend is paid, dividends paid in 2006 and subsequent years are designated as eligible dividends. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
1099-DIV Information Reporting for United States Tax Purposes:
Commencing May 6, 2003, Qualified Dividends paid by a Qualified Foreign Corporation became subject to U.S. income tax at the same 0% or 15% maximum rates that apply to net capital gains.
Nexen is a Qualified Foreign Corporation for U.S. tax purposes and our dividends qualify for the reduced rates of tax. In order to claim the reduced rates of tax, a shareholder must have owned our stock for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date.
For more information with respect to this or the 1099-DIV form, please visit http://www.irs.gov/ or contact your professional tax advisor.
Please speak to your financial advisor for any tax related questions regarding your dividends.