MELBOURNE, June 9 -- Shell Development Australia has made an offer to Nexus Energy Ltd., Melbourne, to purchase 100% of Nexus's rights to the natural gas from Crux gas-condensate field in the Browse basin off Western Australia.
Nexus will retain its 100% interest in the condensate from the field.
The arrangement will enable Nexus to begin final plans for its gas-condensate recycling project with gas reinjection at Crux field using a floating production, storage, and offloading vessel and shuttle-tanker offtake.
Nexus bought Crux, which lies in Ashmore Cartier Permit AC/P23, in December 2005 for a cash payment of $12 million (Aus.). Following interpretation of a recent 3D survey over the region, the company has estimated condensate reserves at 71 million bbl and gas reserves at 2 tcf.
Nexus has survived a takeover attempt by Anzon Australia Ltd., Melbourne, which is now a 20% Nexus shareholder.
Shell has recently stepped up its interest in the Browse basin by taking a 100% interest in nearby Permit WA-371-P.
The company bid 12 wells for the first 3-year's work program, a figure that more than doubled the activity level bid by other contenders. Shell believes Inpex's Ichythys gas field comes across the permit boundary into its acreage.
Shell holds Diamond Offshore's Ocean Epoch semisubmersible under a 400-day contract with options to renew. It is using the rig elsewhere in Southeast Asia but will bring it to Australia for the Browse campaign.