Husky Energy commissioned Liuhua 29-1 field, Block 29/26, in the South China Sea. It is China’s first deepwater gas field development with about 1,300 m water depth. First gas is expected in early November.
Tied into existing infrastructure at Liwan, Liuhua 29-1 is the third field in the Liwan gas project, 300 km southeast of the Hong Kong Special Administrative Region, that also includes Liwan 3-1 and Liuhua 34-2 fields (OGJ Online, Mar. 31, 2014; Dec. 15, 2014).
The seven-well project was completed safely, ahead of schedule, and $100 million below budget, the company said.
In total, the Liwan gas project is expected to deliver around $950 million (Husky working interest) from operations in 2021. Liuhua 29-1 alone is expected to generate $1.3 billion in funds from operations for Husky over the next decade.
Year-to-date total production from Liwan 3-1 and Liuhua 34-2 is about 390 MMcfd of natural gas and 16,000 b/d of associated liquids. Total production in 2021 is expected to be 450 MMcfd and 17,500 b/d liquids.
Husky Oil China, a subsidiary of Husky Energy, holds 75% interest in Liuhua 29-1. China National Oil Corp. (CNOOC) owns the remaining 25%. Husky is operator of the deepwater infrastructure of the Liwan gas project while CNOOC operates the shallow water infrastructure.