Nexus Energy has entered a non-binding agreement with oil and gas giant Shell and Japan’s Osaka Gas which will see gas from the Crux natural gas asset off the Kimberley coast processed through Shell’s Prelude floating LNG plant.
Melbourne-based Nexus announced today that it had entered agreement to form the new joint venture, which will supersede Nexus’ current arrangements with Shell once finalised.
Shell has previously indicated that the Crux gas is an integral part of Prelude.
Participating interests for the new joint venture would see Shell hold 80 per cent, Nexus 17 per cent and Osaka Gas three per cent.
Nexus chairman Michael Fowler said the agreement was a “good outcome” for Nexus and its shareholders.
“It will allow us to focus on adding potential gas reserves to the Crux area and continue the next phase of growth for the company,” Mr Fowler said in a statement.
“This deal provides certainty for the future of the Crux project and creates a transparent value for Nexus’ share of the project which is not fully reflected in our share price.
Under the agreement, Nexus also holds a 12-month option to sell 2 per cent of its participating interest in the joint venture to Shell for $75 million, reducing its stake to 15 per cent.
Nexus stocks last traded at 24 cents.
