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August 2, 2007
Osaka Gas Co., Ltd.
Osaka Gas Co., Ltd today announced that it has reached an agreement with Nexus Energy Limited (*) for its acquisition of 15% interest, through Osaka Gas Crux Pty Ltd., in AC/P23 permit block located in Browse Basin offshore Western Australia. Osaka Gas Crux is wholly owned by Osaka Gas Australia Pty Ltd which is a wholly owned subsidiary of Osaka Gas in Australia. Acquisition price was A$75 million.
Nexus has already identified a condensate field named Crux within AC/P23 and has also completed front end engineering studies based on floating production storage and offloading facility (FPSO) as well as drilling of appraisal wells. Osaka Gas and Nexus target final investment decision (FID) of the condensate project in the second quarter in 2008, and production commencement in two years from the FID. The peak time production volume is expected to be around thirty thousand barrels per day.
Osaka Gas expects that its participation in oil and gas upstream business contributes to increasing its competitiveness and profitability in the energy business. The company’s acquisition of interest in the Crux project not only contributes to the consolidated financial profits but also to acquiring technical and commercial expertise in the oil and gas business.
Osaka Gas intends to continue its investments in Australian oil and gas upstream business including development of LNG projects.
(*) Nexus Energy is an ASX-listed energy exploration and production company headquartered in Melbourne, Australia.