Husky proves Liwan as giant field off China

By OGJ editors
HOUSTON, Feb. 24 -- A delineation well has confirmed the giant nature of Husky Oil China Ltd.'s 2006 deepwater Liwan 3-1-1 gas discovery in the South China Sea.

Husky Oil China, which has secured the West Hercules semisubmersible for 3 years with extension options, is preparing front end engineering and design work for the Liwan development project for tender after it obtains results from the next appraisal well on Block 29/26. Then the rig will drill other exploration wells.

The company previously said it could recover 4-6 tcf of gas at Liwan, which it said opened a new hydrocarbon province in the southwestern Pearl River Mouth basin. Husky Oil China didn't indicate when Liwan production might begin.

The first appraisal well, drilled and tested in 1,345 m of water 350 km southeast of Hong Kong, was drilled to 3,887 m true vertical depth below sea level.

The Liwan 3-1-2 well, which cut 36 m of net gas pay in the main reservoir zone, flowed at an equipment-restricted rate of 53 MMcfd, indicating that deliverability could exceed 150 MMcfd.

The predrill 3D seismic interpretation indicated a direct hydrocarbon response at the Liwan 3-1-2 location, which the company's analysis indicated was present over a majority of the 55 sq km closure.

Block 29/26 covers 3,965 sq km and is one of six held by Husky Oil China in the South China Sea. China National Offshore Oil Corp. has the right to participate in the Liwan development with up to a 51% working interest. Husky Oil China also holds one exploration block in the East China Sea.

Liwan is 330 km east of Hainan Island and 195 km east of Husky's Wenchang oil development (see map, OGJ, Dec. 17, 2001, p. 62).

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