Arc said it has secured the rig and evacuated personnel from its Yulleroo-1 well site, in the Canning Basin, as a precaution against the category one storm.

Spudded on January 22, the final well in Arc’s Canning Basin exploration program has so far reached a depth of 1865m. Total depth is planned for 3500m.

With a planned total vertical depth of 3500m, Yulleroo -2 is targeting 474-928 billion cubic feet of gas.

Offshore northwestern Australia, Apache Energy has shut-in production at its Stag oil fields since Monday.

The Woodside-operated Legendre has also shutdown.

Legendre produced about 7000 barrels of oil a day at the end of December, while Stag has a daily output rate of about 8700bbl.

Reuters quoted a spokesperson from co-venturer Santos as saying the vessels for Legendre and Stag were disconnected and sailed away on Monday afternoon.

In addition, Santos has stopped production at its Mutineer-Exeter field prior to the cyclone due to field repairs.

However, its operations in the Timor Sea, including the Bayu Undan, Challis and Elag oil and gas fields, have not been affected by the cyclone.

On Wednesday, AED Oil said it had stopped production at its Puffin oil project in the Timor Sea, due to developing storms.

The Puffin project has a daily production of 6000-10,000 barrels.

The Bureau of Meteorology said at 8am this morning that Cyclone Nicholas still remains a Category 1 system and was about 300km northwest of the town of Broome and 325km north-northeast of Port Hedland.

"It is expected to show limited intensification in the short term, but is likely to develop further during Friday and Saturday," the bureau said.

“In the short term motion may be quite erratic but in the longer term it is likely to take a south to southwesterly track.”

The cyclone is expected to cross the Pilbara coast west of Whim Creek.

Communities bbetween Broome and Whim Creek, an rea that includes Port Hedland, have been told to keep listening for latest advice.