Husky wins Madura Strait permit extension

Indonesia’s government has awarded Husky Energy a 20-year extension to the Madura Strait Production Sharing Contract (PSC), first awarded in 1982.

Offshore staff


 

CALGARY – Indonesia’s government has awarded Husky Energy a 20-year extension to the Madura Strait Production Sharing Contract (PSC), first awarded in 1982.

The PSC includes the Madura BD and MDA fields in the Madura Strait, offshore East Java, and various other prospects and leads.

According to John C.S. Lau, President and CEO, Asia Pacific, the extension will allow the partners to progress the Madura BD’s gas and natural gas liquids towards development.

Most requirements to bring the field into production are already in place. In 2007, Husky signed gas sales agreements with three local companies for the sale of 100 MMcf/d of natural gas.

In 2008, Husky reached a further agreement with CNOOC to jointly develop Madura BD. A Plan of Development has been approved by the Indonesian government, and front end engineering and design was completed earlier this year.

Husky and CNOOC have each agreed to sell a 10% equity stake in Husky Oil (Madura) to Samudra Energy, via the latter’s affiliate SMS Development.

10/29/2010

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