First cargo delivered from White Rose

Husky Energy Inc. confirms that the first shipment of crude oil from the White Rose field was delivered to Irving Oil's Canaport Terminal near Saint John, New Brunswick, Canada.

Offshore staff

(Canada) - Husky Energy Inc. confirms that the first shipment of crude oil from the White Rose field was delivered to Irving Oil's Canaport Terminal near Saint John, New Brunswick, Canada.

The cargo of approximately 600,000 bbl of crude is being transported by theJasmine Knutsen shuttle tanker, which will reach the offshore terminal following a three-day sail from the White Rose field, 350 km east of St. John's, Newfoundland and Labrador, Canada.

The crude will be processed at Irving's Saint John refinery for distribution through its regional retail network. "The delivery of the first cargo of crude oil to the Canadian market demonstrates the significant economic benefit of the White Rose project to Canada," said Mr. John C.S. Lau, president & CEO, Husky Energy Inc.

Refiners in Canada and the US have expressed a high level of interest in processing White Rose oil. The White Rose crude, which has a low sulphur content of 0.31 Wt percent and is 31° API, is an ideal feedstock for refineries in Ontario and Quebec, the east coast of Canada and the US.

In accordance with pre-arranged schedules, the second and third shipments of White Rose crude are in place for delivery to the US Gulf Coast and Irving Oil, respectively.

The White Rose field is currently producing 75,000 b/d. It is expected to reach peak production of 100,000 b/d in the first half of 2006. Oil from the field flows through a subsea production system to theSeaRose FPSO (floating production, storage and offloading vessel). The SeaRose FPSO has a 940,000-bbl storage capacity, equivalent to about 10 days at peak production.

Husky has a time charter on two shuttle tankers, theHeather Knutsen and the Jasmine Knutsen, which were purpose-built to transport White Rose crude direct from the SeaRose FPSO to world markets. The Samsung-designed double-hulled tankers each have a crude oil capacity of 1 MMbbl. It is anticipated that at peak production, the tankers will offload oil from the SeaRose FPSO every 8-10 days.

12/06/05

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