Interest Payable on Nexen's 7.35% Subordinated Notes

Market Wire, January, 2009

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, 2009, to note holders of record on January 15, 2009.

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, Western Canada (including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas), deep-water Gulf of Mexico, offshore West Africa and the Middle East. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity, governance and environmental protection.

Contacts: Michael J. Harris, CA Vice President, Investor Relations (403) 699-4688 Lavonne Zdunich, CA Analyst, Investor Relations (403) 699-5821 Nexen Inc. 801 - 7th Ave SW Calgary, Alberta, Canada T2P 3P7 Website: www.nexeninc.com