CALGARY, Alberta, April 17 - Husky Energy Inc said on Thursday it has agreed to sell a half interest in an Indonesian natural gas field to China National Offshore Oil Corp for $125 million in order to speed its development.
Husky, Canada's No. 3 oil explorer and refiner, said it and CNOOC have agreed to jointly develop the offshore Madura BD gas field, 40 kilometers (25 miles) north East Java in the Madura Strait.
"CNOOC brings extensive experience and strong technical skills in operating offshore Indonesia," Husky Chief Executive John Lau said in a statement. "We are pleased to team up with a strong partner to ensure that the development of the Madura BD field proceeds expeditiously and efficiently."
The Canadian firm, majority controlled by Hong Kong billionaire Li Ka-shing, has already partnered with CNOOC on its offshore China holdings. The two share stakes in the Wenchang offshore oil field 100 kilometers (62 miles) east of Hainan Island.
As well, CNOOC has the right to acquire 51 percent of Husky's Liwan gas find in the South China sea, a discovery said to contain as much as 6 trillion cubic feet of natural gas.
Husky has so far identified 515 billion cubic feet of gas on its Madura property and 23 million barrels of natural gas liquids. Production from the field is expected to begin in 2011.
Husky, Canada's No. 3 oil explorer and refiner, said it and CNOOC have agreed to jointly develop the offshore Madura BD gas field, 40 kilometers (25 miles) north East Java in the Madura Strait.
"CNOOC brings extensive experience and strong technical skills in operating offshore Indonesia," Husky Chief Executive John Lau said in a statement. "We are pleased to team up with a strong partner to ensure that the development of the Madura BD field proceeds expeditiously and efficiently."
The Canadian firm, majority controlled by Hong Kong billionaire Li Ka-shing, has already partnered with CNOOC on its offshore China holdings. The two share stakes in the Wenchang offshore oil field 100 kilometers (62 miles) east of Hainan Island.
As well, CNOOC has the right to acquire 51 percent of Husky's Liwan gas find in the South China sea, a discovery said to contain as much as 6 trillion cubic feet of natural gas.
Husky has so far identified 515 billion cubic feet of gas on its Madura property and 23 million barrels of natural gas liquids. Production from the field is expected to begin in 2011.
