Nexus gears up for Crux liquids project
Nexus Energy has committed for $308 million in drilling and equipment packages, the clearest sign yet of an imminent green light for the Crux field liquids/gas recycling project.
MELBOURNE, June 30 -- Nexus Energy Ltd., Melbourne, has committed for $308 million in drilling and equipment packages, the clearest sign yet of an imminent green light for the Crux field liquids/gas recycling project in permit AC/P23 in the Browse Basin off Western Australia.
The company secured the semisubmersible Transocean Legend for a minimum contract of 260 days to drill five new development wells and complete all eight wells planned for the Crux development. Drilling is expected to begin during the first quarter of 2009.
The notice of award with rig owner Sedco Forex also includes optional drilling slots for additional appraisal, development or exploration wells around the field. Drilling will be completed in advance of installation and hook up of the floating production, storage, and offloading vessel and before the potentially disruptive cyclone season.
Nexus signed a letter of intent with Cameron Australasian for the supply of eight subsea trees for the project. A similar letter was signed with Wellstream International for flexible subsea flow lines to connect the wells to the FPSO.
Nexus said these early commitments are essential to lock in project costs and maintain the project schedule. A contract for the FPSO turret mooring swivel system will be awarded in the next few months.
Nexus (85% interest holder and operator) and its 15% joint venturer Osaka Gas expect to make a final investment decision on the project before 2009. If so, the Crux liquids are to come on stream by the end of 2010.