New find: Husky Energy makes another gas find off China's coast
Husky makes another gas find off China
Canada's Husky Energy has made another big gas find off China's coast, its third major discovery in the region, as it mulls a spinoff of its Asian operations.
The company, controlled by Hong Kong magnate Li Ka-shing, said its Liuhua 29-1 exploration well in the South China Sea tapped what it called "a high-quality field" that could produce as much as 90 million feet per day.
The find is on the Block 29/26 about 300 kilometres (186 miles) southeast of Hong Kong, near where Husky made its massive Liwan gas find in 2006 and the LH 34-2 gas field it discovered last year, Reuters reported.
"The three natural gas fields ... have confirmed the resource potential as a major gas development project in the South China Sea and supports an earlier estimation of petroleum initially in place of 4 to 6 trillion cubic feet for the Block," John Lau, Husky's chief executive, said in a statement.
Husky is currently developing its Liwan find and expects to file its development plans with regulators later this year. It expects both its earlier discoveries to be commercially producing by 2013 and though its still assessing its latest find, the company expects it will be able to use Liwan's infrastructure.
China's state-controlled CNOOC has the right to buy a 51% stake in Husky's discoveries on the offshore block.
Husky said last week it will decide by mid-year on whether to spin off its Asian offshore operations.