Liwan offshore China on course for late-year start-up

Offshore staff

CALGARY, Canada – Husky Energy (Toronto:HSE) expects first gas from the Liwan project in the South China Sea either in late 2013 or early 2014.

All development wells are drilled and flow tested, and final well completion work is progressing. The jacket for the shallow-water central platform – claimed to be the largest ever built and installed offshore Asia – has been placed on the seabed. The topsides are expected to undergo floatover and installation onto the central jacket this spring.

Husky estimates that more than 80% of the project has been completed, including construction of the onshore gas plant.

Offshore Indonesia, Husky and its partner are working on development of the shallow water MDA, MBH, and BD fields in the Madura Strait. MDA and MBH will be developed together with a wellhead platform. BD has a gas sales agreement in place, and production is expected to start during 2015/2016.

Last year, the partners made four new gas discoveries on the Madura Strait block, and all are being assessed for potential development.

Offshore Newfoundland, Husky has advanced several offshore satellite projects to optimize output from the White Rose area.

A subsea drill center has been excavated at the South White Rose extension ahead of project sanction. First oil is expected next year. Development concepts for the West White Rose extension project include a wellhead platform. Production could start in 2016.

A fourth production well came online at the North Amethyst field late in 2012, and pending regulatory review, a further well could be drilled later this year in the deeper Hibernia formation.

Husky’s well on the Searcher prospect offshore Newfoundland did not encounter commercial hydrocarbons. The company is participating in a well on the Harpoon prospect, close to the Mizzen discovery in the Flemish Pass. Pre-drilling work has also been completed on two other potential exploration wells in the region.

2/6/2013

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