MELBOURNE, Australia – Nexus Energy has signed the Crux consolidation agreements with Shell and Osaka Gas which will accelerate exploration and development of the gas discovery offshore northwest Australia.
The Crux AC/L9 joint venture, led by Shell Development (Australia) Pty Ltd with 80% interest, includes Nexus at 17% and Osaka Gas with 3% if all required approvals are issued.
Once the transaction is completed, the new joint venture will move to convert the existing Production License (AC/L9) to a Retention Lease. This will require a detailed work program which will include technical studies of a range of development options, including a standalone development concept, and exploration drilling of the Auriga prospect targeted for early 2014.
“The commercial framework is now in place to allow the partners to accelerate exploration and fully assess the range of development options for Crux, including the possibility of establishing a new FLNG facility in the East Browse with Crux gas as the anchor resource,” said Lucio Della Martina, Nexus CEO. “We are delighted to have Shell as operator with access to its breakthrough FLNG technology and expertise to maximize the value potential of the acreage.”