Husky Energy Completes Liuhua 29-1 Gas Project Offshore China

Commissioning has been completed at the third field at the Liwan gas project offshore China, Canadian oil company Husky Energy has said.

"As a result of strong cooperation between Husky and its long-time partner CNOOC, the seven-well Liuhua 29-1 project was completed safely, ahead of schedule and $100 million below budget despite the COVID-19 pandemic and associated global economic volatility. First gas is expected to be delivered to end users starting in early November," Husky Energy said

Husky Energy CEO Rob Peabody said: "The startup of Liuhua 29-1 just two years after the project was sanctioned is a significant milestone for Husky and CNOOC. This third field will provide Husky with additional stability in funds from operations."

The Liuhua 29-1 field is tied into the existing infrastructure at Liwan, which includes the Liwan 3-1 and Liuhua 34-2 fields within Block 29/26, located around 300 kilometers southeast of the Hong Kong Special Administrative Region.

According to Husky, in total, the Liwan Gas Project is expected to deliver around $950 million in funds from operations in 2021 (Husky working interest.)

The Liuhua 29-1 field alone is expected to generate $1.3 billion in funds from operations for Husky over the next decade, the Canadian oil company said.

Year to date in 2020, total production from the two producing fields at Liwan is approximately 390 million cubic feet per day (mmcf/day) of natural gas and 16,000 barrels per day (bbls/day) of associated liquids. Total production in 2021 is expected to be 450 mmcf/day and 17,500 bbls/day of liquids.

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