Nexus Energy Limited (“Nexus”) advises that the Memorandum of Agreement (MOA) with Vanguard Oil and Gas International Limited and Viking Shipping Limited (together, “Viking”) for the supply of a floating production storage and offloading vessel (FPSO) for its Crux liquids project, which was signed in 2007, has been terminated on the basis that the Crux joint venture was unable to proceed to a final investment decision (FID) with Viking as the FPSO provider.
The Crux joint venture will now proceed to negotiate an alternative offer from a market-leading FPSO provider for the supply of an FPSO for the project. The joint venture may also test the wider market, given current market conditions.
The finalisation of an alternative FPSO contract will increase confidence that delivery of first liquids from the Crux liquids project will be achieved by mid 2011.
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