Crux JV Receives Retention Lease Offer from Joint Authority

Nexus Energy disclosed Wednesday that the Crux joint venture has received an offer from the Joint Authority for the issuance of a retention lease, with respect to Production License AC/L9, for five years.

The Crux JV applied for the retention lease with the National Offshore Petroleum Titles Administrator following completion of the consolidation of the Crux assets with Shell Development (Australia), Oaska Gas Crux and Nexus Energy on Oct. 25, 2012.

"The Crux JV will now review the attaching conditions to the retention lease offer and has up to 30 days to formally accept. The detailed work program and associated defined timelines include technical studies of a range of development options, including a standalone development concept, and exploration drilling of the Auriga prospect targeted for 2014," Crux said in a statement.

The development options currently under consideration for the Crux field include a tie-in to Shell's Prelude floating liquefied natural gas (FLNG) vessel or a standalone FLNG project.

Under the Crux JV agreement, Shell is operator of the Production License AC/L9, with an 80 percent interest. Nexus and Osaka Gas hold a 17 percent and 3 percent interest respectively.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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