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Husky Energy and CNOOC have commenced first production at the landmark Liwan Gas Project

31st March 2014

Canadian company, Husky Energy, and CNOOC have started production at a Liwan field project in the South China Sea, with a future expected output of 400 to 500 mmcf/day

Liwan project Husky Energy CNOOC
The Husky-CNOOC project consists of three fields: Liwan 3-1, Liuhua 34-2 and Liuhua 29-1, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure.

Husky Energy has started production at the Liwan 3-1 field, with initial natural gas sales expected to be approximately 250 million cubic feet per day (mmcf/day) gross and increasing to approximately 300 mmcf/day in the second half of 2014.

"Liwan is Husky's largest project to date and places us inside the door of one of the fastest growing energy markets in the world," said Asim Ghosh, Husky chief executive officer. "It was a massive undertaking and is a great achievement for deepwater gas production in the Asia Pacific Region."

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

Negotiations are underway for the Liuhua 29-1 gas sales contract.

Total gas sales are expected to rise towards a range of 400 to 500 mmcf/day (gross) with the planned tie-in of the Liuhua 29-1 field in the 2016-2017 timeframe.

Husky holds a 49 per cent interest in the Production Sharing Contract (PSC) for the Liwan Gas Project and operates the deepwater infrastructure. CNOOC  holds a 51 per cent interest in the PSC and operates the shallow water facilities and onshore gas terminal. The first stage of the US$6.5 billion project connecting the Liwan 3-1 field and work to date to tie in the Liuhua 34-2 field have been completed on budget.

 

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