Husky: Construction progress of BD field reaches 76%, FPSO 85%

By Romel S. Gurky

Canadian firm Husky Energy said Friday that construction progress of wellhead platform and pipeline infrastructure at the liquids-rich BD field in the Madura Strait block, offshore East Java, has reached 76 percent.

The company said in a statement that construction of an FPSO vessel to process gas and liquids production from the BD field is approximately 85 percent complete. ?The vessel has left the dry dock and the remaining processing modules are planned to be installed in the next few months,? the statement said.

The company said development well drilling continued in the second quarter of 2016. The first of four wells being drilled in batch mode has reached target depth and the drilling of the remaining three is ongoing. Production from the development is expected to commence in the 2017 timeframe.

At the MDA, MBH and MDK gas fields, located in the same block, the tendering process for a floating production vessel has been reviewed for consistency with government tender guidelines and the operating company is awaiting feedback from the industry regulator for any necessary further actions. Tendering is 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 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