Nexus Plans to Position Crux as Floating Gas Hub

Nexus Energy plans to position Crux as a significant floating gas and condensate hub and looking develop it as a standalone floating LNG project given its hydrocarbon potential. Crux is strategically located in the East Browse basin off Western Australia.

“Arguable the most important, event of the year saw us consolidate our interest in the Crux permit with Shell and Osaka Gas. In this pivotal transaction, we have taken a big step forward into the LNG value chain and transformed our rights to the liquids production into a strategic interest in the whole Crux gas field,” Don Voelte, Chairman told shareholders.

In the joint venture 17% interest is owned by Nexus, 80% by Shell, who is the operator, and 3% Osaka Gas.

The joint venture is planning further exploration with the low risk Auriga prospect planned for drilling by first quarter of 2014. Nexus’ estimated prospective in place volumes are 1.3 TCF.

“A successful outcome will provide substantial economic underpinning of the East Browse standalone FLNG case which in Nexus’ view is the case with the highest value potential,” company’s Chief Executive Officer Lucio Della Martina said in an adress to shareholders.

Della Martina said that that company is reviewing plans to sell part of its 17 percent stake in the project to reduce debt or even exit the venture.