Nexus, Shell, Osaka Gas in Crux field joint venture offshore Australia

Aug. 3, 2012
Nexus Energy Ltd. of Melbourne signed consolidation agreements with Shell Development Australia and Osaka Gas Co. Ltd. to participate in a Shell-operated integrated gas and liquids development for the Crux gas-condensate field in the Browse basin offshore Western Australia.

Nexus Energy Ltd. of Melbourne signed consolidation agreements with Shell Development Australia and Osaka Gas Co. Ltd. to participate in a Shell-operated integrated gas and liquids development for the Crux gas-condensate field in the Browse basin offshore Western Australia.

In the new joint venture, Shell has 80% interest, Nexus 17%, and Osaka gas 3%. Nexus has a 12-month option to sell an additional 2% stake in the project to Shell.

Shell will operate the AC-L9 Crux production licence, taking over from Nexus, subject to approval of federal government authorities (OGJ Online, May 11, 2011).

A range of development options will be considered to position Crux as a hub in the East Browse basin. Options include a new floating LNG plant.

The new joint venture wants to convert the existing production licence into a retention lease, which will require a detailed work program involving technical studies.