Husky says construction of BD project in Madura Strait completed

JAKARTA ( – Calgary-based Husky Energy Inc. (TSX:HSE) said the construction of the liquids-rich BD field project in the Madura Strait block has been completed.

The shallow water platform and subsea pipeline installation is complete, and the floating production, storage and offloading (FPSO) vessel is on site, it said.

A wellhead platform and pipeline infrastructure were also completed at the BD project.

“The project is expected to ramp up to its full sales gas rate during the second half of 2017, with a net daily sales target of 40 mmcf/day of gas and 2,400 bbls/day of liquids,” Husky said.

The company has also received government approval for the award of the bid for a leased floating production unit (FPU) at the MDA-MBH fields.

The engineering, procurement, construction and installation contract has been signed and the platforms are under construction.

The company now expects the first gas to come in 2018-2019 timeframe, with an additional shallow water field at MDK to be tied in during the same period.

Total net sales gas volumes from BD, MDA-MBH and MDK are expected to be approximately 100 mmcf per day of gas and 2,400 bbls per day of associated liquids once production is fully ramped up.

Husky is continuing to advance its shallow water gas projects in the Madura Strait offshore Indonesia. These include the BD and MDA-MBH fields.

The Madura BD gas field is located in the Madura Strait production sharing contract (PSC), offshore East Java, about 65km east of Surabaya, Indonesia’s second largest city, and about 16km south of Madura Island.

Husky-CNOOC Madura (HCML) is the operator of the PSC. Husky Oil and CNOOC hold a 40% interest each in HCML, while the remaining 20% working interest is owned by Indonesian company Samudra Energy Ltd, through its affiliate SMS Development.

Five natural gas discoveries in the Madura Strait are being evaluated for commercial development. (*)

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