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CNOOC and Husky launch production from Liuhua 34-2 gas field in the South China Sea

15th December 2014

Husky Energy and CNOOC have commenced production from the Liuhua 34-2 gas field in the Eastern South China Sea, the second field to be brought online at the Liwan Gas Project this year.

CNOOC and Husky launch production from Liuhua 34-2 gas field in the South China Sea
The Liwan Gas Project consists of the Liwan 3-1, Liuhua 34-2 and Liuhua 29-1 fields, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure

"Liuhua 34-2 will contribute to the ramp up of Liwan next year," said Asim Ghosh, Husky Energy 949 per cent interest) CEO. "The project is making a sound contribution to our business and is now delivering significant cash flow from gas sales that are at a higher price than in North America."

The Liwan 3-1 field began production in March 2014.

The Liuhua 34-2 field will produce approximately 30 million cubic feet per day (mmcf/day, gross) in addition to the Liwan 3-1 volumes.

The Liuhua 34-2 gas field is located in the Eastern South China Sea with the water depth in the range of 850 to 1,250 metres. The gas field consists of one producing well and shares the existing facilities of Liwan 3-1 gas field for overall development. The gas field has an ODP designed peak production of approximately 45 million cubic feet per day in 2015.

Located approximately 300 kilometres southeast of the Hong Kong Special Administrative Region, the Liwan Gas Project consists of the Liwan 3-1, Liuhua 34-2 and Liuhua 29-1 fields, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure.

Natural gas from Liwan 3-1 and Liuhua 34-2 is being processed at the onshore gas terminal at Gaolan and sold to the mainland China market, with initial production covered by fixed-price gas sales agreements.

Husky holds a 49 per cent interest in the Production Sharing Contract (PSC) for the Liwan Gas Project and operates the deepwater infrastructure. Its partner CNOOC Limited holds a 51 per cent interest in the PSC and operates the shallow water facilities and onshore gas terminal.

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