Canada's Husky Energy has announced that it has made two successful exploration discoveries in the South China Sea offshore China and offshore Newfoundland and Labrador in Canada. It has also signed two new Production Sharing Contracts (PSCs) in Asia.
In Canada, Husky Energy made a discovery 10 kilometres north of the SeaRose FPSO (floating production, storage and offloading) vessel. The White Rose A-24 exploration well drilled in the second quarter of 2018 encountered more than 85 metres of oil-bearing sandstone and the discovery continues to be evaluated. Husky has a 68.875 percent ownership interest in White Rose A-24, with partners Suncor Energy (26.125 per cent) and Nalcor Energy Oil and Gas (five per cent).
In China, the firm had a successful exploration well that was drilled on Block 15/33 in the South China Sea, about 160 kilometres southeast of Hong Kong. Early results from the first of two exploration wells drilled on the 155 square-kilometre block demonstrated four oil-bearing zones with a combined thickness of about 70 metres. Further testing is under way to assess potential commercial development.
Husky has a working interest of 100 percent. In the event of a commercial discovery, its partner CNOOC Limited may assume up to 51 per cent.
In other Asia related news, Husky stated that it had signed two Production Sharing Contracts (PSCs) for Blocks 22/11 and 23/07 in the Beibu Gulf area of the South China Sea. Block 22/11 covers an area of 1,663 square kilometres with a water depth of 40-80 metres and Block 23/07 covers an area of 1,210 square kilometres with a water depth of 20-40 metres.
Under the PSCs, Husky will act as operator during the exploration period. Upon entering a development phase, CNOOC Limited may assume a participating interest up to 51 per cent.