CALGARY, Canada – Husky Energy’s China subsidiary has signed a heads of agreement (HOA) with CNOOC and other companies.
This concerns a price adjustment of natural gas from the offshore Liwan 3-1 and Liuhua 34-2 fields that would see the price set at $C12.50-15.00 ($9.52-11.43) per thousand cubic feet at current exchange rates.
CEO Asim Ghosh said: “Long-term fundamentals remain strong for natural gas demand in China. The price adjustment will allow Husky and CNOOC to maintain their market share in a competitive gas market.
“We reached this agreement in the spirit of the long-standing relationship between Husky and CNOOC that brought to life the first deepwater development offshore China.”
Gross take-or-pay volumes will remain at 300-330 MMcf/d.
“Husky and CNOOC plan to further deepen their cooperation and have undertaken to jointly create more value with the advancement of the Liuhua 29-1 gas field,” Ghosh added.
Tying Liuhua 29-1 into the existing Liwan infrastructure is expected to boost production by around 80 MMcf/d.
Husky has a 49% in the production-sharing contract for the Liwan gas project and operates the deepwater infrastructure. CNOOC, which has a 51% interest, operates the shallow-water facilities and the onshore gas terminal.
Both companies are also collaborating on various shallow-water natural gas and liquids developments offshore Indonesia.
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