Husky allocates BD field gas for E. Java market at $7/mcf
Saturday, July 22 2017 - 04:14 AM WIB
Canadian firm Husky Energy Inc said that gas production of the BD field in the Madura Strait block, offshore East Java, will be sold the East Java market at contract rates of US$7 per thousand cubic feet (mcf), with future escalation factors.
The company said in a statement on Friday that the BD field project began testing and commissioning in the second quarter and is expected to reach commercial production soon.
?Gas is being provided to the East Java market at contract rates of US$7 per thousand cubic feet (mcf) for a realized price of approximately $9.50 Cdn per mcf, with future escalation factors,? Husky said in the statement, but did not disclose details on the gas buyers.
?Current gross sales are in the range of 30-40 million cubic feet per day (mmcf/day) with approximately 2,500 bbls/day of gas liquids (12-16 mmcf/day and 1,000 bbls/day Husky working interest),? it added.
The company said that BD Gas Project is expected to ramp up throughout 2017 towards full gas sales rates, with a gross sales production target of 100 mmcf/day of gas (40 mmcf/day Husky working interest) and 6,000 bbls/day of associated liquids (2,400 bbls/day Husky working interest).
Four additional fields in the Madura Strait are being advanced. Shallow water platforms have been installed at the combined MDA-MBH and MDK fields, which are scheduled for first production in the 2019-2020 timeframe.
All three fields share infrastructure, including a floating production vessel, with the processed gas tied into the existing East Java subsea pipeline.
Total gross sales volumes from the BD Gas Project and the MDA-MBH and MDK fields are expected to be approximately 250 mmcf/day of gas (100 mmcf/day Husky working interest) and 6,000 bbls/day of associated liquids (2,400 bbls/day Husky working interest) once production is fully ramped up.
?Pre-engineering activities are progressing at the MAC field, where an approved plan of development is in place. Additional discoveries in the region are being evaluated for potential development,? Husky said.
Husky holds a 40 percent working interest in a joint venture company that holds the PSC for the Madura Strait Block covering approximately 622,000 acres, offshore Indonesia. It is focused on the development of the BD, MDA, MBH, MDK and MAC fields.
Editing by Reiner Simanjuntak