Husky: Construction progress of BD field exceeds 90%

By Romel S. Gurky

Canadian firm Husky Energy said that at the liquids-rich BD field, in the Madura Strait block, offshore East Java, pipeline construction is ongoing and the project is approximately 92 percent complete.

The company said in a statement Thursday updating the project?s progress that the installation and testing of the subsea pipeline has been completed. The construction of the onshore gas metering station is nearing completion.

Husky said construction of a FPSO vessel to process the gas and liquids production is approximately 94 percent complete and preparations are underway for the transportation and installation of the vessel at the field location.

?Development well drilling continued in the third quarter of 2016. All four wells have been drilled and cased to target depth and are now being completed. Production from the BD development is expected to commence in 2017,? the statement said.

At the MDA, MBH and MDK gas fields, located in the same block, a re-tendering process is underway for a floating production vessel, for which bid documents have been received and are undergoing technical evaluation. Tendering is also underway for related engineering, procurement, construction and installation contracts.

The company said it has secured a gas sales agreement for the first tranche of gas from the MDA and MBH fields, which will be developed in tandem. Negotiations of gas sales agreements for the remaining available tranches of gas sales from the MDA, MBH and MDK gas fields are in progress.

Production from the MDA, MBH and MDK fields is expected in the 2018 - 2019 timeframe. Combined net sales volumes from the BD, MDA, MBH and MDK fields are expected to be approximately 100 mmcf/day of natural gas and 2,400 bbls/day of associated NGLs once production is fully ramped up.

Husky and CNOOC respectively hold a 40 percent equity interest in Madura Straits PSC, with the remaining 20 percent held by Samudra Energy Ltd.

Editing by Reiner Simanjuntak