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Nexus to divest portion of its Crux stake

Nexus Energy Ltd. of Melbourne wants to sell down some of its 17% interest in the Crux gas-condensate field in the Browse basin offshore Western Australia.

Chief Executive Officer Lucio Della Martina told shareholders at the company’s annual general meeting in Melbourne that Nexus was formally engaged with a number of interested parties about the possible sale. Martina even admitted that Nexus might sell its entire 17% holding.

“We have received an indication of interest in both a tranche of the asset and potentially the entire Nexus stake,” he said. “Whilst the strategic intention is to divest a tranche of Crux, the board will consider the full range of divestment options provided these reflect the full value potential of the permit.”

The new integrated Crux gas and liquids joint venture in the east Browse basin was formally established in October. That venture comprises Shell with 80% and operatorship, Nexus 17%, and Osaka Gas 3%.

Nexus can opt to reduce its share to 15% by selling 2% to Shell at any time within the next 11 months for $75 million (Aus.).

At this stage the preferred option for field development is a floating LNG facility using technology Shell has established for the nearby Prelude development.

Della Martina told the meeting that Nexus hopes such a facility would also process gas from other stranded gas reserves in nearby fields, such as PTTEP’s Cash-Maple field to the north in the Timor Sea.

In another point of interest Nexus recently brought former Woodside Chief Executive Officer Don Voelte on to its board as a nonexecutive director.


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