Rick Wilkinson
OGJ Correspondent
MELBOURNE, Mar. 5 -- A 50:50 joint-venture of Shell Development (Australia) Pty. Ltd. and Nexus Energy Ltd. has been awarded Browse basin permit AC/P41, about 200 km off the Kimberley region of northern Western Australia.
AC/P41, which covers about 1,900 sq km, surrounds Crux gas-condensate field where Nexus is drilling a Crux-2 sidetrack to establish another control point prior to a liquids stripping-FPSO development.
A recent 3D survey by Nexus in the Crux permit (AC/P23) included a then-open area to the south and indicated a possible extension of the field in this direction. That potential extension is now contained within the new AC/P41 permit.
The JV, operated by Shell in the new area, has pledged further geological studies and another 3D seismic survey prior to drilling a well during the first 3 years of the permit term.
Shell bought the gas reserves in the proven AC/P23 section of Crux for $40 million last year. The company was to have access to those reserves in 2020 upon completion of Nexus' Liquids stripping project. However the deal may be renegotiated to bring a gas project forward if the field extension is proven in the new AC/P41 permit.