CALGARY - A unit of Calgary-based Husky Energy Inc. group announced a contract for joint development of the Wenchang oil fields in the South China Sea. Husky Oil China Ltd., and China National Offshore Oil Corp. (CNOOC) will develop the Wenchang 13-1 and 13-2 fields. Husky will have a 40% working interest in the CNOOC-operated fields.
The Wenchang fields were discovered in 1997. They are located in the western Pearl River Mouth basin, approximately 186 miles south of Hong Kong and 84 miles east of Hainan Island in water depth of 328 ft. Regulatory approvals have been received and work has begun on development.
Husky Senior Vice-Pres. James S. Blair said production from Wenchang is scheduled to begin in the first half of 2002 with a peak production of 50,000 b/d. He said independent estimates of recoverable reserves for the two fields is about 100 million bbl.
Husky said the Wenchang project team has approached international contractors to build a floating production, storage, and offloading vessel to be located between the two fields with a storage capacity of 1.2 million bbl. There will be one fixed platform at each field, connected to the FPSO by pipelines.
Husky Pres. and CEO John C.S. Lau said the Wenchang project fits well with Husky's Canadian East developments from a technology and operating perspective. He said it would also enhance earnings potential and provide a strong foundation for the company's international portfolio.
Husky has extensive interests on Canada's East Coast and is currently finalizing development plans for the White Rose field in the Jeanne d'Arc Basin off Newfoundland.
