Global turmoil hits WA oil project

The global financial turmoil has forced Nexus Energy Ltd to look for other potential buyers of a 25 per cent stake in the Crux light oil project offshore Western Australia, after the original buyer pulled out of the $356 million deal.

In a statement today, The Melboure-based Nexus said the buyer did not receive board approval for the purchase, citing global market conditions for not proceeding.

Nexus said it will stick with its intention of looking for a joint venture partner for the development of the project and had resolved to start a formal global process for the sale of the stake, which is valued at $US255 million ($A356 million).

Last month there was speculation that Japan's Mitsui Group was behind the purchase of the Crux stake however Nexus, today, did not name the company that had intended to purchase the interest.

Meanwhile Mitsui has signed a deal with Nexus to acquire a 20 per cent interest in the AC/P41 exploration permit for $US20 million ($A28 million) cash.

Under the deal, Mitsui will also fund costs up to $US34 million attributable to Nexus' remaining 30 per cent interest for three exploration wells.