Clear The Air Energy Blog Rotating Header Image

Husky plans gas pipeline in South China Sea

Pipeline & Gas Journal – June 2008

Canada’s Husky Energy plans to construct a 320-km pipeline as part of a major development in the South China Sea. Husky estimates development costs of the Liwan gas field may reach $US5 billion. The field is estimated to contain 4-6 Tcf of gas, making it potentially one of China’s largest offshore gas fields. China National Offshore Oil Corporation is Husky’s partner in the development

Husky’s first venture in China was the 2002 acquisition of a 40 percent interest in the Wenchang oil fields located in the western Pearl River Mouth Basin, approximately 300 kilometres south of Hong Kong and 135 kilometres east of Hainan Island. Husky’s total landholdings in the South and East China Seas have grown to over 21,000 square kilometres.

At its significant hydrocarbon discovery at Liwan 3-1-1, in Block 29/26, in the South China Sea, Husky has secured a deep water drilling rig for a three year term with delivery expected in mid-2008. Based on current interpretation of the 2-D seismic and the Liwan 3-1-1 well results, the discovery could contain a potential recoverable resource of four to six trillion cubic feet of natural gas, making it one of the largest natural gas discoveries offshore China.

CNOOC Ltd. recently acquired a 50 per cent equity interest in Husky’s Madura Strait block covering an area of 2,794 square kilometres. Husky Energy and CNOOC Ltd. will jointly develop the Madura BD gas and natural gas liquids field located offshore East Java, Indonesia. Husky’s total holdings in Indonesia are 7,049 square kilometres.

Husky holds a 100 percent interest in the East Bawean II PSC, offshore Indonesia and will continue to focus on exploration and drilling activities in Indonesia. Husky recently completed a 1,410 square kilometre 3-D seismic program over this block in preparation for a two well exploration program in 2009.

In 2007, Husky was awarded three exploration licences offshore Greenland. It has an 87.5 per cent interest in two blocks covering 21,000 square kilometres and a 43.75 per cent interest in a third block covering 13,000 square kilometres. Seismic testing is scheduled for 2008 in the areas.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>