AUSTRALIA

Nexus to drill Crux field in early 2009

NEXUS Energy has secured the Transocean Legend semi-submersible drilling rig for its Crux liquids...

Nexus to drill Crux field in early 2009

The company said it had signed a notice of award with Sedco Forex International to secure the rig, which is expected to begin operations on the Crux field between February and April next year.

The award for the Transocean Legend includes a minimum duration contract of 260 days to drill five additional development wells and complete all eight wells planned for the Crux development.

The contract will also include optional drilling slots for Nexus to drill additional appraisal, development or exploration wells around the Crux field.

Nexus said the timing of the drilling rig availability will enable well work to be completed in advance of the floating production storage and offloading (FPSO) vessel installation activities, and before the potentially disruptive cyclone season.

The company also said it had signed equipment packages for the Crux development.

Nexus has signed letters of intent (LOI) with Cameron Australasian for the supply of eight subsea trees, and with Wellstream International for the supply of the flexible subsea flow lines, which will connect the Crux development wells to the FPSO vessel.

These LOIs follow the LOI signed in January 2008 with GE Oil and Gas for the supply of two reinjection compressors trains for the FPSO gas processing plant, Nexus said.

Managing director Ian Tchacos said securing a high-quality drilling rig in the tight market was an important milestone for the Crux liquids project schedule.

"In addition, the early commitment to key equipment components is critical to locking in project costs and maintaining the project schedule on this very valuable development," he said.

According to Nexus, the commitments cost about $US308 million.

Nexus said that it and partner Osaka Gas will continue to work towards a final investment decision for the Crux project before the end of year, and the company expects to award a further major contract for the FPSO turret mooring swivel system in the coming months.

The Crux field is expected to deliver first production by the end of 2010.

Nexus Energy has an 85% interest in AC/P23 and Osaka Gas has the remaining 15%.

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