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    Shell Gets Oz Regulatory Nod for Crux Project


The field will provide backfill gas for Shell's Prelude LNG project.

by: Joseph Murphy

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Shell Gets Oz Regulatory Nod for Crux Project

Australia's National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) has approved Shell's plan to develop the Crux gas field off Western Australia's north coast, the regulator said on August 4.

Shell wants to use Crux as a source of backfill gas supply for its 3.6mn mt/yr Prelude LNG export project, brought on stream last year. The development plan for the Browse basin field involves a platform and five production wells, connected to Prelude via a 165-km pipeline.

A final investment decision (FID) on Crux had been expected this year, but Shell delayed the step following the collapse in oil prices in March. First gas had been anticipated in 2025.

In a statement, Nopsema said it had signed off on Shell's plan after an assessment lasting almost two years. Further regulatory approvals will be needed for the project's environment and well management plans, and a facility safety case, the agency said.

Shell serves as Crux's operator, while its partners are Japan's Osaka Gas and Australia's Seven Group Holdings. The Anglo-Dutch major is also the lead developer at Prelude, partnered with Japan's Inpex, Taiwan's CPC and South Korea's Kogas.