Third Liwan gas development gets green-light

The Husky Energy board of directors has sanctioned Liuhua 29-1, the third deepwater field serving the Liwan gas project in the South China Sea.

Offshore staff

CALGARY, Canada– The Husky Energy board of directors has sanctioned Liuhua 29-1, the third deepwater field serving the Liwan gas project in the South China Sea.

Production will be tied into the existingLiwan subsea infrastructure and the onshore Gaolan Gas Plant, and delivered to buyers in the Pearl River Mouth basin area. First gas is anticipated in 2021.

Under the production-sharing contract,CNOOC Ltd. has the right to participate in any field development projects for up to a 51% working interest. Husky expects to recover approximately $250 million in exploration costs within the first 18 months of production.

At the combinedMDA-MBH fields in the Madura Strait, seven production wells are scheduled to be drilled in the first half of 2018. First gas is anticipated in 2019.

The project shares infrastructure with the MDK field, which is set to be tied in during the same period. Gas will be processed on a floating production vessel and transported through the East Java subsea pipeline.

Offshore Eastern Canada, a development well was drilled at the main White Rose field, with first production achieved in late 2017. At North Amethyst, a development well was completed and is scheduled to be brought online this month. Each of the two wells is expected to add 3,500 b/d at peak production.

Construction of the concrete gravity structure to support the topsides of theWest White Rose project is under way at a purpose-built graving dock in Argentia, Newfoundland and Labrador.

The project is scheduled for completion in 2021, with first oil anticipated in 2022. West White Rose is expected to reach peak production of 75,000 b/d in 2025 as development wells are drilled and brought online.

03/01/2018

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