Husky adds South China Sea gas find at Liwan

By OGJ editors
HOUSTON, Dec. 9 -- A unit of Husky Energy Inc., Calgary, gauged another large gas-condensate discovery on deepwater Block 29/26 in the eastern South China Sea, near the company’s 2006 Liwan discovery from which it hopes to begin gas production in 2013.

Deliverability from the LH 34-2-1 discovery could exceed 140 MMcfd of gas, similar in character to the Liwan 3-1 wells, Husky said.

LH34-2-1, in 1,145 m of water 23 km northeast of Liwan 3-1 gas-condensate field, cut a “significant thickness” of excellent quality, gas-charged reservoir, Husky said. It tested gas with a high liquids content at an equipment-restricted rate of 55 MMcfd.

Excited that its drilling program is validating the company’s geological predictions in the little-drilled area, Husky noted that front-end engineering and design for the Liwan 3-1 field development, to which the LH 34-2-1 discovery will be tied in, is at an advanced stage. The company expects to submit a development plan to regulatory authorities in early 2010.

Meanwhile, the West Hercules semisubmersible is preparing to spud another exploratory well on the 551,000-acre block, and Husky plans to appraise LH 34-2 in early 2010. CNOOC Ltd. has the right to participate for up to 51% working interest in the Liwan development.