CNOOC delivers first gas from Liwan project offshore China

Offshore staff

CALGARY, Canada – Husky Energy and CNOOC have released details about the Liwan gas project in the South China Sea.

The development, around 300 km (186 mi) southeast of the Hong Kong Special Administrative Region, takes in the Liwan 3-1, Liuhua 34-2, and Liuhua 29-1 fields. These are being developed via a shared subsea production system, subsea pipeline transportation, and onshore gas processing infrastructure.

Under the $6.5-billion first-stage program, Liwan 3-1 is expected to produce about 250 MMcf/d (7.1 MMcm/d), and increase to about 300 MMcf/d (8.5 MMcm/d) during the coming quarter. Initial sales of condensates and natural gas liquids from the field are expected to reach 10,000-14,000 boe/d.

Liuhua 34-2 will be tied into the Liwan infrastructure during the second half of the year, subject to final approvals. Production from Liwan 3-1 will be offline for six to eight weeks to accommodate the tie-in.

Combined gas output from the two fields of around 340 MMcf/d (9.6 MMcm/d) will be processed at a terminal onshore in Gaolan and sold to the mainland China market.

Once Liuhua 29-1 is tied in during 2016-2017, total gas sales will build to 400-500 MMcf/d (11-14 MMcm/d).

Husky has a 49% interest in the production-sharing contract and operates the deepwater infrastructure. CNOOC has a 51% interest and operates the shallow-water facilities and onshore gas terminal.

03/31/2014

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