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CSP# (communicating sequential programs) is a modelling language designed for specifying concurrent systems by integrating CSP-like compositional operators with sequential programs updating shared variables. In this work, we define an observation-oriented denotational semantics in an open environment for the CSP# language based on the UTP framework. To deal with shared variables, we lift traditional event-based traces into mixed traces which consist of state-event pairs for recording process behaviours. To capture all possible concurrency behaviours between action/channel-based communications and global shared variables, we construct a comprehensive set of rules on merging traces from processes which run in parallel/interleaving. We also define refinement to check process equivalence and present a set of algebraic laws which are established based on our denotational semantics. We …