Seven Group’s stake in the Crux gas field is up for grabs with the bidding process for the resource now underway.
Crux is located off the coast of Western Australia and Seven (15 per cent owner), project operator and majority owner Shell (82 per cent) and joint venture (JV) partner Osaka Gas (3 per cent) are looking to develop the field with five production wells and associated infrastructure tied back to the existing Prelude Floating LNG (FLNG) facility via a 26 inch (660 mm) 165 km export pipeline.
The Australian is reporting Morgan Stanley has been appointed to find a buyer for Seven’s equity in the project, with Inpex and CPC Corporation among the interested parties, along with Osaka.
Inpex also owns 17.5 per cent of the Shell-operated Prelude project and Seven’s Crux portion could be worth up to $300 million.
Development of the resource is expected to cost around $2 billion and the JV is targeting a final investment decision on the project in 2020.
In February this year, Shell submitted the project proposal to the National Offshore Petroleum Safety and Environmental Management Authority and awarded Wood and KBR front-end engineering and design contracts.
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