Husky and Indonesia reach deal over MDA and MBH developments

By TAN HWEE HWEE Singapore

 20 December 2012 23:59 GMT

Calgary-based Husky Energy is understood to have reached a compromise with Indonesia over the proposed development plan for the MDA and MBH gas and condensate discoveries in the Madura Strait production sharing contract.

At the same time, a re-tender is in process for the key production facility for the more complex Madura BD field in the same block.

Husky had previously proposed to develop MDA and MBH using a leased floating production unit and a pair of wellhead platforms.

However, the Indonesian authorities counter-suggested a newbuild instead of a leased FPU, taking into consideration Husky’s $650 million to $700 million project budget.

Both parties are said to have reached a consensus after several months of talks and will proceed with a leased floater tied to a purchase…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index