Liwan gas facilities taking shape offshore China

Offshore staff

CALGARY, Canada – Major construction activity is on track for the Liwan Gas Project in the South China Sea according to partner Husky Energy (HSE:Toronto).

Fabrication of subsea equipment, the subsea platform base, topsides, and gas plant continues through this year with all work due to be completed by early 2013.

Liwan is due to deliver first gas in late 2013/early 2014. Production from the Liwan 3-1 and Liuhua 34-2 fields is set to build through 2014 to around 300 MMcf/d. Once the field is developed, the full Liwan project should achieve production close to 500 MMcf/d by 2015.

In December, China’s government approved the Original Gas In-Place (OGIP) report for the Liuhua 29-1 field, the third large discovery on block 29/26. Front-end engineering design is now ready to begin.

Offshore Indonesia, Husky says tendering continues for equipment and services for the Madura BD field development, with first gas expected in 2014.

Last year, the company drilled two successful delineation wells in the Madura Straits block that proved more commercial gas volumes in the MDA and MBH fields.

Well MBH-1, drilled late in 2011, was a new gas discovery which tested at an equipment-restricted rate of 18.1 MMcf/d.

The MBH field could be developed in tandem with the MDA field and a plan of development should be filed this year. Husky has a 40% interest.

The company plans up to six more exploration wells this year on the Madura Straits block, all close to existing infrastructure.



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