Husky, CNOOC expect to get E. Java PSC extension this year

Canadian firm Husky Energy Inc and its 50 percent in Madura BD Block offshore East Java CNOOC Southeast Asia Limited expect to receive an extension to the PSC in 2009.

Husky said on Thursday that the Madura BD field development plan was approved by the government of Indonesia during the second quarter of 2008.

?Engineering work has been tendered and will commence upon receipt of the PSC extension,? the company said.

When development of Husky?s BD field is completed, production is estimated at 100 to 110 million cubic feet per day of sales gas and 6,000 barrels per day of condensate. The natural gas will be processed through a floating production unit and will flow via a 60 kilometer pipeline for delivery onshore to East Java.

In 2007, Husky signed three gas sale and purchase agreements for the sale of 100 million cubic feet per day of natural gas from the Madura BD field to East Java buyers. (alex)