nexus set to sign shell deal over browse

NEXUS Energy is set to announce it has finally signed a deal with Shell to combine the gas and liquids in the Crux petroleum field in the Browse Basin off the coast of Western Australia.

Melbourne-based Nexus went into a trading halt yesterday ahead of an announcement today or tomorrow. Neither Shell nor Nexus would comment on the status of talks, but it is believed a previously announced deal that would give Nexus 17 per cent stake in Crux, Shell an 80 per cent stake and Osaka Gas the remainder was yesterday almost signed off.

Currently, Nexus holds the right to develop the petroleum liquids contained in the gas, while Shell has the rights to the gas.

Nexus had been running out of time to get the liquids into production. But in January, Nexus signed a non-binding heads of agreement with Shell to merge the Crux gas and liquids interests with a view to processing them through the nearby Prelude floating LNG project when gas at the Prelude field ran low.
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In May, the pair said the agreement had been extended to also look at an earlier, standalone floating LNG plant or an integrated liquids production project that would recycle gas into the field until it was ready to be produced through Prelude.

In more good news for Nexus, whose shares have halved in value to 11c in the past three months, production at its Longtom operation in Bass Strait has restarted after three weeks of being shut down because of an electrical fault. Also yesterday, Nexus's biggest shareholder, M&G Investments, revealed it had sold its 12.7 per cent stake down to 11.63 per cent.

http://www.theaustralian.com.au/business/mining-energy/nexus-set-to-sign-shell-deal-over-browse-holdings