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2 minutes read

Shell Clears Key Hurdles for $2.5bn Crux Gas Project

UK supermajor Shell has received key approvals from Australia’s offshore regulator, NOPSEMA, enabling the company to advance its US$2.5 billion Crux gas field development.

The Crux field will supply backfill gas to Shell’s Prelude floating liquefied natural gas (FLNG) facility, with production routed through a new 165-kilometre pipeline to the Prelude vessel to the southwest.

Shell reached final investment decision in May 2022, and first gas from Crux is anticipated as early as 2027.

In late November, NOPSEMA approved the Environment Plan (EP) covering completions, hot commissioning, start-up, and operational activities — including contingent and supporting works — for the Crux field.

The approved scope includes the completion of five wells involving perforation, clean-up, tree tie-ins to topsides, and associated activities expected to take between three and ten months. Hot commissioning of gas turbine generators and related systems to energise the Crux platform is forecast to take an additional one to five months.

NOPSEMA has also granted Shell approval to start up the Crux facilities and safely commence production from the offshore Western Australia wells, with hydrocarbons exported to Prelude FLNG. Start-up activities are estimated to take between nine and 24 months.

The regulator further approved the ongoing operation of Crux’s facilities, including not-normally-manned operation, planned and unplanned platform visits, maintenance campaigns, turnarounds, well interventions, workovers, and related activities.

Shell’s work under this latest EP is scheduled to begin in 2026, subject to further regulatory clearances and project scheduling.

The Crux development is planned for a 15-year production life, with the potential for extension based on reservoir performance, recovery efficiencies, and future development opportunities, according to NOPSEMA.

Located in Commonwealth waters of the northern Browse Basin, approximately 200 kilometres offshore northwestern Australia, the Crux project spans petroleum title AC/L10 and pipeline licences WA-33-PL and AC/PL1, in water depths ranging from 95 to 280 metres.

McDermott (US) fabricated the jacket for the Crux platform, designed to process up to 550 million cubic feet per day of gas. The 10,000-tonne topsides were built by Seatrium in Singapore under a 2022 contract originally awarded to Sembcorp Marine.

Shell took FID on Crux two months before awarding the topsides contract. Consultancy Wood Mackenzie estimates the field will produce approximately 1.6 trillion cubic feet of gas, 66 million barrels of condensate, and 40 million barrels of LPG over its operational lifetime.

Front-end engineering and design (FEED) for the not-normally-manned platform, export pipeline, and subsea pipeline end manifold (PLEM) was executed by Wood and KBR.

NOPSEMA’s first approval for the Crux project was acceptance of the Offshore Project Proposal (OPP) in August 2020.

The Crux joint venture comprises operator Shell and partner SGH Energy, which holds a 15% stake.

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