Nexus Energy Ltd., Melbourne, has expanded the scope of its transaction with Shell Australia and Osaka Gas for Crux field in the Browse basin off northwest Western Australia beyond the previous Prelude field backfill development option.
The agreement now includes an option for an early stand-alone floating LNG (FLNG) development and an integrated recycle project option followed by backfill to Shell’s Prelude.
With this in mind the timeline for completion of documentation has been extended for the expanded scope with target completion by the end of June 2012.
Nexus says the application process to convert the existing production licence (AC/L9) to a retention lease will begin once all parties have executed binding agreements.
The final completion of the transaction will occur when four conditions have been satisfied.
They are: 1. Each party receiving their respective internal approvals for the transaction. 2. Execution of documentation by all parties. 3. Foreign Investment Review Board approval. 4. Regulatory approval and registration.
After completion a new joint venture will be formed for AC/L9 such that Nexus will hold 17%, Shell 80% as well as assuming operatorship and Osaka Gas 3%.
Shell will grant Nexus a 12-month option to sell a further 2% of its participating interest in the new joint venture to Shell for $75 million (Aus.).