The MV ‘Ishwari’ vessel is being purchased by Vanguard Oil and Gas International for conversion into a floating production storage and offloading project for use at Crux.

This follows a memorandum of understanding signed between Nexus, Vanguard and Viking Shipping in July.

Nexus said the MV ‘Ishwari’ was a high quality, well maintained Suezmax class crude oil tanker with a full ‘double hull’, which was built in South Korea in 1991.

“Dedication of the vessel to the project marks the first major milestone in the development of the Crux field,” managing director Ian Tchacos said.

“It provides the process facilities team with the information required to allow commencement of the detailed design for the project.”

Under the MOA, Nexus and Vanguard have agreed to begin an engineering design and equipment procurement program leading up to the expected sanction of the Crux liquids project in the third quarter of 2008.

This work will include detailed designs of the gas processing plant, weather-vaning turret and mooring system to be incorporated into the FPSO.

In addition, the companies will finalise a work program to incorporate the turret and mooring system, the gas processing and recycling plant, and all necessary marine systems on the converted tanker.

Finally, the companies have committed to securing key long lead items to meet the projected production start-up date in mid 2010.

In related news, Nexus said it has secured a $50 million loan from the Bank of Scotland to fund the drilling of the Crux-3 and Crux-4 wells.