Husky Says Indonesia's Madura Strait Projects to Start Production in 2017

Husky Energy Inc. reported that the its shallow water gas projects in the Madura Strait offshore Indonesia is on track for first production in 2017, the company revealed in an update on its second quarter results Tuesday.

The Canada-based firm, which jointly operate the field with China's CNOOC, indicated that construction of a wellhead platform and pipeline infrastructure at the liquids-rich BD field is around 45 percent complete, while a floating production, storage and offloading (FPSO) facility is being built to process the gas and liquids production from the field. Malaysia's Bumi Armada Berhad and its Indonesian partner PT Armada Nusantara were awarded the $1.18 billion FPSO supply contract in December 2014.

Husky said the operator has completed a rig procurement process for the project although no futher details were available.

Meantime, the company reported that a tendering process is now underway for a floating production vessel and related engineering, procurement, construction and installation contract to develop the combined MDA-MBH fields in the Madura Strait. These fields are expected to be progressively brought on production between 2017 and 2019. The operator has also secured approval for  a plan of development for the MDK field, which is targeted to be tied into the MDA-MBH fields in the same period.

Husky added that combined net sales volumes from the BD and MDA-MBH fields are expected to reach around 90 million cubic feet per day (MMcf/d) of gas and 2,400 barrels of oil equivalent per day of associated liquids.

Elsewhere in Indonesia, the firm said a 3D seismic program on the Anugerah block offshore East Java was recently completed, with the data currently being evaluated to determine the potential for future exploration activity.

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