CALGARY, Canada -- Husky Energy Inc. and China National Offshore Oil Corp. signed contracts covering three exploration blocks totaling almost 17,000 sq km in the South China Sea.
Block 29/06 in the Pearl River Mouth basin is adjacent to block 29/26, which contains the Liwan 3-1-1 gas discovery. The block covers 9,265 sq km in water depths of 500-1,500 m.
Blocks 35/18 and 50/14 are in the Ying Ge Hai basin west of Hainan Island. They cover 4,469 sq km and 3,137 sq km, respectively, in water depths of less than 120 m.
Under the terms of the petroleum contracts, Husky will drill one exploration well in each of the Ying Ge Hai blocks and two wells on the 29/06 block within the three year term. The operator will fund 100% of the exploration costs, while CNOOC retains the right to back into any future development with a 51% interest.
The acquisition of these exploration blocks brings Husky's total holdings to over 30,000 sq km of exploration acreage in the South and the East China Seas.