Australia's Crux JV wins 5-year retention lease for gas/liquids project
Singapore (Platts)--30Jan2013/258 am EST/758 GMT
Australia's National Offshore Petroleum Titles Administrator has offered
the Shell-led Crux joint venture a five-year retention lease for production
license AC/L9, located off the country's northwest coast.
"The Crux JV will now review the attached conditions to the retention
lease offer and has upto 30 days to formally accept it," Australia-listed
Nexus Energy, which holds a 15% stake in the JV, said Wednesday.
Shell has an 82% stake in the JV, with Japan's Osaka Gas holding the
remaining 3%. The AC/L9 permit contains the Crux field and the Auriga and
Further updates with details regarding the attached conditions will be
provided upon completion of the acceptance process, Nexus said.
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"The offer of the retention lease by the joint authority is a significant
milestone towards unlocking the value of our investment in Crux through the
earlier possible commercialization of the Crux field," Lucio Della Martina,
managing director and CEO of Crux, said in the statement.
The detailed work program and associated defined timelines for the
project 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, Nexus said.
Shell, Nexus and Osaka Gas have been exploring potential development
options for Crux, including a stand-alone floating LNG facility, which could
also process third-party gas.
Other options are an early liquids recycling project, followed by gas
processing at Shell's nearby Prelude floating LNG facility, or developing
Crux as "backfill" gas for Prelude. The 3.6 million mt/year Prelude FLNG
facility is expected to start up in 2017.
--Mriganka Jaipuriyar, firstname.lastname@example.org
--Edited by E Shailaja Nair, email@example.com