**Exhibit 11.1**

 

**Nexen Inc.**

**Statement re: Computation of Earnings per Share - U.S.GAAP**

**For the Year Ended December 31, 2009**

 

(Amounts in Cdn $ millions, except shares and per share amounts)

 
| ** **                                                             | ** ** | **2009**       | ** ** | **2008**       | ** ** | **2007**       | ** ** |
|------------------------------------------------------------------------|------------|----------------|------------|----------------|------------|----------------|------------|
| ** **                                                             | ** ** | **Quarter  1** | ** ** | **Quarter  2** | ** ** | **Quarter  3** | ** ** | **Quarter  4** | ** ** | **Annual** | ** ** | **Annual** | ** ** | **Annual** | ** ** |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Net  income available to common stockholders (U.S. GAAP)               |       | $156           |       | ($12           | )          | $175           |       | $188 |   | $507 |   | $1,704 |   | $1,012 |   |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Basic                                                                  |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Weighted  average number of common shares outstanding (thousands)      |       | 520.2          |       | 521.2          |       | 521.7          |       | 522.7 |   | 521.4 |   | 526.1 |   | 527.1 |   |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| **Basic earnings per share**                                           | ** ** | **$0.30**      | ** ** | **($0.02**     | **)**      | **$0.34**      | ** ** | **$0.36** | ** ** | **$0.97** | ** ** | **$3.24** | ** ** | **$1.92** | ** ** |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Diluted                                                                |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Weighted  average number of common shares outstanding (thousands)      |       | 520.2          |       | 521.2          |       | 521.7          |       | 522.7 |   | 521.4 |   | 526.1 |   | 527.1 |   |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Net  additional shares issuable pursuant to stock options (thousands): |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Issuable  on exercise                                                  |       | 7.6            |       | —         |       | 10.3           |       | 7.5 |   | 10.1 |   | 18.8 |   | 26.6 |   |
| Re-purchasable  from proceeds                                          |       | (5.1           | )          | —         |       | (7.0           | )          | (5.2 | ) | (7.0 | ) | (12.7 | ) | (15.7 | ) |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Net  dilutive effect of stock options (thousands)                      |       | 2.5            |       | —         |       | 3.3            |       | 2.3 |   | 3.1 |   | 6.1 |   | 10.9 |   |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| Adjusted  number of common shares (thousands)                          |       | 522.7          |       | 521.2          |       | 525.0          |       | 525.0 |   | 524.5 |   | 532.2 |   | 538.0 |   |
|                                                                   |       |           |       |           |       |           |       |   |   |   |   |   |   |   |   |
| **Diluted earnings per share**                                         | ** ** | **$0.30**      | ** ** | **($0.02**     | **)**      | **$0.33**      | ** ** | **$0.36** | ** ** | **$0.97** | ** ** | **$3.20** | ** ** | **$1.88** | ** ** |

 

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