Dividends

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.

Tax Implications

Please speak to your financial advisor for any tax related questions regarding your dividends.

On February 25, 2013, CNOOC Limited acquired Nexen Inc. Nexen's common shares have been delisted from the Toronto Stock Exchange and the New York Stock Exchange. To access information for CNOOC Limited investors, go to www.cnoocltd.com

Dividend History (the last 4 quarters)
Declared Record Payable Amount Type
10/25/2012 12/10/2012 01/01/2013 Cdn$0.050 Cash
07/19/2012 09/10/2012 10/01/2012 Cdn$0.050 Cash
04/25/2012 06/08/2012 07/01/2012 Cdn$0.050 Cash
02/16/2012 03/09/2012 04/01/2012 Cdn$0.050 Cash

Dividend Reinvestment Plan (DRIP)
Since the announcement of Nexen entering into an arrangement agreement with CNOOC Limited and CNOOC Canada Holding Ltd., Nexen communicated the suspension of our Dividend Reinvestment Plan (DRIP). A copy of the arrangement agreement is attached as Appendix C to the Information Circular and Proxy Statement (PDF 0.7MB) dated August 16, 2012.

Further to the completion of the acquisition of Nexen by CNOOC Limited, the DRIP was terminated effective February 25, 2013.

Registered common shareholders enrolled in Nexen's DRIP have been mailed a share certificate representing whole common shares held in their DRIP account and if applicable, payment for fractional common shares from our transfer agent, CIBC Mellon Trust Company.

Stock Splits

Nexen has performed five stock splits on our authorized common shares:

Declared Record
May 2007 2 for 1
May 2005 2 for 1
May 1996 2 for 1
September 1987 2 for 1
December 1979 3 for 1

On February 25, 2013, CNOOC Limited acquired Nexen Inc. Nexen's preferred shares have been delisted from the Toronto Stock Exchange. To access information for CNOOC Limited investors, go to www.cnoocltd.com

Dividend History
Declared Record Payable Amount Type
12/03/2012 12/19/2012 12/31/2012 Cdn$0.3125 Cash
07/19/2012 09/10/2012 09/30/2012 Cdn$0.3125 Cash
04/25/2012 06/08/2012 07/03/2012 Cdn$0.3928 Cash