Husky Moves Closer to Chinese Gas Field Start-up
Canadian producer Husky has completed the subsea tie-in of the Liuhua 29-1 gas field in the South China Sea, it said on September 2, with production expected to start by November.
Husky and its Chinese partner Cnooc have brought the field to mechanical completion ahead of schedule and below budget, the Calgary-based firm said, despite challenges created by the Covid-19 pandemic. Through its 75% stake, together with exploration cost recovery volumes, Husky expects to net 45mn ft3/d (465mn m3/yr) of gas and 1,800 b/d of liquids production when the field reaches its plateau.
Liuhua 29-1 is part of the $6.5bn Liwan gas project, which also comprises the Liwan 3-1 and Liuhua 34-2 fields, which came on stream in March and December of 2014. Husky has 49% stakes in these two deposits, with Cnooc controlling the remaining interests.
Husky also said it had achieved first oil at the Spur Lake Central thermal project in Saskatchewan, Canada. It marks Husky's sixth 100,000 b/d thermal bitumen project to start up since 2015, and production began on schedule and on budget. It will reach full capacity within a couple of months.
"Both Spruce Lake Central and the Liuhua 29-1 field are expected to generate immediate strong free cash flow at current pricing as they come on stream," CEO Rob Peabody said. "Our portfolio of lower-cost, higher margins projects reinforces our resilience in a challenging market environment."