Husky Energy
An integrated energy and energy-related company that ranks among Canada's largest petroleum companies in terms of production and the value of its asset base. Its upstream activities are focused in Western Canada, offshore Eastern Canada and China.
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CNOOC-Husky partnership begins producing gas
CNOOC Ltd (NYSE:CEO; HK:0883) China’s largest offshore oil producer, said on Monday that its first well drilled in partnership with Husky Oil China Ltd, a wholly-owned subsidiary of Husky Energy Inc (TSX:HSE), has produced gas. Despite an early rise, CNOOC continued to fall slightly, losing 3.83 percent in New York trading and 3.03 percent in Hong Kong, while Husky also fell, losing 2.82 percent in Toronto trading.
Husky Energy, a Canadian company controlled by Hong Kong billionaire Li Kashing, said test results showed a flow of up to 53m cubic feet of gas per day, suggesting a major gas discovery. CNOOC expects production of 150m cubic feet per day. The well, Liwan 3-1-2, is located 350 km south east of Hong Kong.
The 3,965 square km block is one of six exploration blocks held by Husky in the South China Sea, with one other located in the East China Sea. CNOOC has the right to participate in the development for up to a 51 percent working interest.
Husky signed a production sharing agreement as an operator with CNOOC in August 2004, and began drilling the first test well in the Pearl River Mouth Basin in November 2008, on the back of a gas discovery made in 2006. “The Liwan Development Project demonstrates our long-term strategy to grow our business in China while contributing to the country's energy needs,” said Husky Energy CEO John CS Lau in a statement.
