By OGJ editors
HOUSTON, Oct. 29 – Indonesia approved a 20-year extension to the Madura Strait production sharing contract that would have expired in 2012, said Husky Energy Inc., Calgary.
The contract area includes Madura BD and MDA fields and numerous prospects and leads.
Many of the requirements to bring the Madura BD field into production are in place, Husky Energy said. In 2007, the company signed agreements with three local companies for the sale of 100 MMcfd of gas.
In 2008, Husky Energy reached an agreement with China National Offshore Oil Corp. to jointly develop the field. The government approved a development plan, and front-end engineering and design was completed in the second quarter of 2010.
Husky Energy and its partner in the Madura Strait have each agreed to sell a 10 percent equity stake in Husky Oil (Madura) Ltd. to Samudra Energy Ltd., through its affiliate SMS Development Ltd. After completion of the sale, Husky and CNOOC will respectively hold a 40% equity interest in Husky Oil (Madura) and Samudra Energy will hold 20%.
