By OGJ editors
HOUSTON, June 16 -- Husky Oil China Ltd. reported a "significant" discovery with its Liwan 3-1-1 well on Block 29/26 off China, confirming what it calls "a new hydrocarbon province" in the South China Sea.
"Based on our current interpretation of the 2D seismic [data] and the Liwan 3-1-1 well results, the discovery could contain a potential recoverable resource of 4-6 tcf of natural gas," said Husky, making Liwan 3-1-1 one of the largest gas discoveries off China.
Liwan 3-1-1, also the first deepwater discovery and the deepest well off China, according to Husky, was drilled to 3,843 m TD in 1,500 m of water in the Pearl River Mouth basin. Block 29/26 is 250 km south of Hong Kong, 330 km east of Hainan Island, and 195 km east of Husky's Wenchang oil development (see map, OGJ, Dec. 17, 2001, p. 62).
The nearest gas pipeline, which passes on the Hainan Island side of Wenchang, is the 440-mile, 28-in. line from Yacheng gas-condensate field to Hong Kong, Husky said.
Liwan 3-1-1, drilled on a large structure with 60 sq km of closure, encountered 56 m of net gas pay on logs over two zones. Interpretation of existing 2D seismic data prior to drilling "indicated a direct hydrocarbon response at the Liwan 3-1-1 location, which Husky's analysis indicates is present over a majority of the 60 sq km closure currently mapped," reported the company. Porosity in the pay zones averaged 20%.
Husky plans to drill a sidetrack to further evaluate the pay zone and will conduct a 3D seismic survey soon to assess similar structures identified in the 2D seismic data. Further drilling on the 3,965 sq km block will follow the 3D evaluation.
Husky signed the production-sharing agreement in August 2004 for Block 29/26, which had a commencement date of October 2004. Husky is exploring in partnership with China National Offshore Oil Corp., which has the right to participate in the development of any discovery with a working interest of as much as 52%.
