Wenchang First Oil Bolsters Husky Energy’s International Growth

abarrelfullabarrelfull wrote on 24 Dec 2013 21:17

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July 10, 2002

Husky Energy Inc. (Husky) and its co-partner, the China National Offshore Oil Corporation Ltd. (CNOOC), have successfully achieved first oil production from the Wenchang offshore project in the South China Sea.

Husky and CNOOC, operator of the Wenchang oil field project (13-1 and 13-2), are producing oil from two fixed platforms and the Wenchang Floating, Production, Storage and Offloading Vessel (FPSO), the “Nanhai Endeavour.” The fields are located in the western Pearl River Mouth Basin, located about 400 kilometres southwest of Hong Kong and 140 kilometres east of Hainan Island.

“The Wenchang project proceeded on schedule and on budget as anticipated by Husky,” said Mr. John C.S. Lau, President and Chief Executive Officer of Husky. “Cash flow from this project will support exploration activities for block 39-05, which is adjacent to this existing development project, as well as contribute to our other growth strategies in the area.”

Husky has a 40 percent working interest in the Wenchang 13-1 and 13-2 fields, and has estimated proved reserves of 83 million barrels. The field peak production is projected to be 50,000 barrels of oil per day. Husky’s share of production from Wenchang is expected to average 8,000 barrels of oil per day in 2002 and 20,000 barrels of oil per day at peak production. Husky estimates the total development cost to be US$327 million, and estimates operating costs during peak production to be
approximately US$2 per barrel.

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