Husky finds oil offshore Canada, China
Husky Energy has made two oil discoveries, one offshore Newfoundland and the other in the South China Sea.
Husky has a 68.875% operated interest in the well, in partnership with Suncor Energy and Nalcor Energy Oil and Gas.
The other discovery was on block 15/33 in 80 m (262 ft) water depth, 160 km (99.4 mi) southeast of Hong Kong. Early results confirmed four oil-bearing zones with a combined thickness of about 70 m (229 ft).
Further testing is under way to assess a potential commercial development. Following completion of the test phase, a second exploration well is due to target a separate structure on the block.
In addition, Husky plans to drill two exploration wells on the nearby block 16/25 later this year. In the event of a commercial discovery in either case,CNOOC can back in with an interest of up to 51%, with Husky allocated exploration cost recovery from production.
The two companies have also signed production-sharing contracts for two blocks 22/11 in the Beibu Gulf area of the South China Sea.
Block 22/11 covers 1,663 sq km (642 sq mi) in a water depth of 40-80 m (131-262 ft), while block 23/07 covers extends for 1,210 sq km (467 sq mi) in 20-40 m (65.6-131 ft) of water.
Here too Husky will act as operator during the exploration period.