Husky to develop South China Sea Liwan gas

Husky Energy Inc.’s China subsidiary will develop Liwan 3-1 deepwater gas field on Block 29/26 in the South China Sea off China.

Dec 8th, 2010

By OGJ editors
HOUSTON, Dec. 8
– Husky Energy Inc.’s China subsidiary will develop Liwan 3-1 deepwater gas field on Block 29/26 in the South China Sea off China.

Husky will operate the deepwater part of the project including development drilling and completions, subsea equipment and controls, and subsea tiebacks to a shallow-water platform. China National Offshore Oil Corp. Ltd. will operate the rest of the project involving the shallow-water platform, 270 km of subsea pipeline, and a gas processing plant onshore.

In signing the heads of agreement, Husky noted that appraisal and front-end engineering design are complete. It expects to submit the development plan to regulatory authorities in early 2011.

Husky continues to hold 49% working interest for Liwan 3-1. Production is to start in late 2013 and ramp up through 2014.

Husky’s other Asia-Pacific assets include gas discoveries the Liuhua 29-1 and Liuhua 34-2 gas discoveries on Block 29/26, the producing Wenchang oil field off China, and growth opportunities at Madura BD and MDA gas field off Indonesia. The company also holds the North Sumbawa II exploration block off Indonesia.

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