Nexus Energy Limited (Nexus) advises that main documentation for the consolidation of interests in AC/L9 has been finalised and parties are now progressing to their final board approvals.
The company refers to the Heads of Agreement with Shell Development (Australia) Pty Ltd (Shell) and Osaka Gas Crux Pty Ltd (Osaka Gas) announced on 19 January 2012 to exclusively pursue a Shell-led integrated gas and liquids development to commercialise the Crux asset.
Timing for completion of documentation was extended to explore additional development options for the AC/L9, containing the Crux field and Auriga and Caelum prospects.
The potential development options include a new standalone FLNG facility to process Crux gas, which could also be able to process third party gas; Early liquids recycle project followed by processing via Prelude; and Prelude backfill.
All parties will seek their respective Board approvals prior to executing the agreed documentation targeted by end of July (based on the formal board approval process and timing of Nexus’s joint venture partners).
Further, Nexus confirms that the appropriate regulatory authorities have been kept informed and the consultation process will continue. An Application to convert the existing Production Licence (AC/L9) to a Retention Lease will commence once all parties have executed binding agreements. The final agreements once executed will also be subject to FIRB and regulatory approvals and registration Following completion, the participating interests in the new Joint Venture in AC/L9 will be Nexus 17%, Shell 80% (and operatorship) and Osaka Gas 3%. The terms of the final documents also provide for Shell to grant Nexus a 12-month option to sell 2% of its participating interest in the new Joint Venture to Shell for A$75 million.
Nexus Chief Executive Officer, Lucio Della Martina said “Today’s announcement represents a key step in the transformation of Nexus into an LNG sector participant – this is a new Nexus.”
Press Release, July 5, 2012