Nexus Energy will pay a shipping company $US17 million ($A26 million) in damages after terminating an agreement over the Crux oil project located in the Browse Basin.
Nexus has agreed to pay $US12 million to Viking Oil and Gas International and Viking Shipping following the termination of a memorandum of agreement for the supply of a floating production storage and offloading (FPSO) vessel.
That payment is due by May this year, while a further $US5 million payment will be made based on certain major divestment and liquidity events.
Nexus' managing director, Ian Tchacos said,
"I am pleased that we have finalised our FPSO arrangements with Viking to the satisfaction of both parties," Nexus managing director Ian Tchacos said.
"The payment represents fair value for Viking's contribution to the technical definition of the Crux liquids project.
"Viking is a major shareholder and we believe their ongoing support is an important factor in achieving Nexus' asset and corporate objectives."
Meantime, Nexus said it has signed an agreement with Single Buoy Moorings to enter into a period of exclusive negotiations for the integrated build, supply and operation of the FPSO vessel for Crux.
