NOPSEMA OKs Shell Crux Proposal

NOPSEMA OKs Shell Crux Proposal
NOPSEMA has accepted an Offshore Project Proposal from Shell Australia to develop the Crux gas field in the Browse Basin.

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has announced that it has accepted an Offshore Project Proposal (OPP) from Shell Australia to develop the Crux gas field in the Browse Basin.

NOPSEMA said its announcement follows a thorough and careful assessment process of almost two years. This has included a public comment process and consideration of all feedback, according to NOPSEMA, which highlighted that the Crux development is subject to further regulatory approvals prior to proceeding. This includes an accepted environment plan, a well operations management plan and a facility safety case.

The proposed Crux development – which would comprise a platform and five production wells – would connect to the Prelude Floating Liquefied Natural Gas (FLNG) facility via a 102 mile export pipeline.

Shell Australia states on its website that the Crux project forms an important part of the company’s gas portfolio. Crux is expected to have a lifespan of at least 20 years, according to Shell, although the company has noted that future investment decisions could extend the life of the project. Shell’s partners in the project comprise Osaka Gas Group – an upstream, midstream and downstream international energy business - and SGH Energy – an Australian oil and gas company and subsidiary of Seven Group Holdings.

NOPSEMA is Australia's independent regulator for health and safety, environmental management, structural and well integrity for offshore petroleum facilities and greenhouse gas storage activities in Commonwealth waters. The organization was established under the Offshore Petroleum Greenhouse Gas Storage Act 2006.

By law, offshore petroleum activities cannot commence before NOPSEMA has assessed and accepted detailed risk management plans, NOPSEMA’s website highlights.

Earlier this year, NOPSEMA accepted the OPP for Woodside Energy Limited’s Scarborough gas project. The company has labeled Scarborough an “integral part” of the Burrup hub.

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