New JV to Speed Up Exploration and Development of Crux (Australia)

Australia’s Nexus today signed Consolidation Agreements with Shell and Osaka Gas for a new Joint Venture which will commercialise the Crux offshore field.

The participating interests in the new Joint Venture in AC/L9 will be Nexus 17%, Shell 80% (operator) and Osaka Gas 3%.  Nexus also has a 12-month option to sell 2% of its participating interest in the new Joint Venture to Shell for A$75 million.

In its press release, Nexus says that the JV’s main objective is to position Crux as a significant hub in East Browse basin, offshore Australia. The East Browse basin has been described as a world class petroleum system with at least four discoveries and is suited to the new floating LNG technology.

The partners will now explore a range of development options including a new FLNG facility to process Crux gas with the opportunity to process third party gas. The work program also includes exploration drilling of the Auriga prospect targeted for early 2014.

Nexus CEO Lucio Della Martina said : “The commercial framework is now in place to allow the partners to accelerate exploration and fully assess the range of development options for Crux, including the possibility of establishing a new FLNG facility in the East Browse with Crux gas as the anchor resource. We are delighted to have Shell as operator with access to its breakthrough FLNG technology and expertise to maximise the value potential of the acreage.”

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Offshore Energy Today Staff, August 3, 2012