Husky, CNOOC agree on Liwan 3-1 development

Husky Oil China Ltd. and China National Offshore Oil Corp. (CNOOC) have signed a heads of agreement regarding cooperation and funding to develop Liwan 3-1 deepwater gas field.

Offshore staff

CALGARY, Canada – Husky Oil China Ltd. and China National Offshore Oil Corp. (CNOOC) have signed a heads of agreement regarding cooperation and funding to develop Liwan 3-1 deepwater gas field.

“This contractual milestone complements the significant progress on the project to date with appraisal work and front-end engineering design complete,” said John C.S. Lau, president & CEO, Asia Pacific, for Husky. “The overall development plan submission to regulatory authorities is expected in early 2011.”

The existing contract for block 29/26 calls for Husky to operate the deepwater portion of the project involving development drilling and completions, subsea equipment and controls, and subsea tiebacks to a shallow-water platform. CNOOC operates the shallow water portion of the project including the platform, approximately 270-km (168-m subsea pipeline to shore, and the onshore gas processing plant.

12/08/2010

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