Canadian independent Husky Energy has started planning for the development of its recent oil discovery on Block 15/33 in the South China Sea's Pearl River Mouth basin, with deployment of a floating production, storage and offloading vessel one solution set to be considered.

Industry officials said Husky and production sharing partner CNOOC Ltd of China have each proposed their own options for study, with Husky favouring the FPSO solution.

They added that Husky is now in talks with FPSO players in the region about the potential for redeployment of an existing unit.

However, CNOOC Ltd is said to be more in favour of a conventional scheme centring on building a subsea pipeline to deliver the oil to an onshore terminal.

Sources said Block 15/33 hosts a few marginal oil discoveries such as Xijiang 34-3, Xijiang 34-2 and Panyu 31 that could be developed by tying them together and linking them to the proposed FPSO or onshore terminal.

CNOOC Ltd already operates six FPSOs in the Pearl River Mouth basin, with another two under construction to develop the Liuhua 16-2 complex and redevelop the Lufeng oilfields cluster.

Meanwhile, CNOOC Ltd is also considering construction of a Sevan-type FPSO for the redevelopment of the Liuhua 11-4 and Liuhua 4-1 fields in the same sea area.

Husky in mid-2018 announced the Block 15/33 find in 80 metres of water, about 160 kilometres south-east of Hong Kong.

Initial tests on the first well showed four oil-bearing zones with combined net pay of 70 metres and a flow rate of 9000 barrels per day, though other sources suggested that rate could have been much higher.

However, a second well drilled on the block was unsuccessful.

The company earlier said that it is progressing commercial development plans following the drilling of two wells on Block 15/33.

The company in 2015 was licensed to explore Block 15/33 via a production sharing contract signed with CNOOC Ltd.

Covering 155 square kilometres, the block was one of more than a dozen offered for foreign co-operation in 2014.

According to the terms of the PSC, Husky will act as operator during the exploration period and carry out exploration activities in the block, in which it will also carry the cost of all expenditures.

CNOOC Ltd has the right to participate at up to 51% of the working interest in any commercial discovery.

In addition to Block 15/33, Husky is developing the Liuhua 29-1 project in the Pearl River Mouth basin's deep-water area.

In a recent statement, it said all seven production wells have been drilled with the well completions under way. The wells will be tied in to the existing subsea infrastructure.

This project is now 65% complete with first gas scheduled in 2020, targeting net production of 45 million cubic feet of gas per day and 1800 bpd of liquids when fully ramped up, based on Husky’s 75% working interest.

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Husky starts on plans for South China Sea find