Shell, Nexus, Osaka Gas add to agreement covering offshore Western Australia block

Offshore staff

MELBOURNE, Australia – Nexus Energy has expanded the non-binding heads of agreement (HOA) with Shell, and Osaka Gas for the alignment and consolidation of interests in production license AC/L9 in the Browse basin offshore Western Australia. AC/L9 contains the Crux field, and the Auriga and Caelum prospects.

The scope of the transaction has expanded to include earlier plans for a standalone FLNG development, an integrated recycle project, followed by the previously outlined agreement details that include Prelude. Target completion for the documentation is for the end of June.

Following regulatory approval, a joint venture will be formed for AC/L9 that will result in Nexus holding a 17% interest, Shell holding 80% (assuming operatorship), and Osaka Gas holding 3%. The terms of the HOA also provide for Shell to grant Nexus a 12-month option to sell 2% of its participating interest in the new JV to Shell for A$75 million ($74 million).

6/8/2012