Husky: Construction progress of BD reaches 70%, FPSO 65%

Canadian firm Husky Energy said that construction of wellhead platform and pipeline infrastructure at the liquids-rich BD field in the Madura Strait block, offshore East Java, is in progress and has reached approximately 70 percent complete.

The company also said in a statement Monday that construction of an FPSO vessel to process gas and liquids production from the BD field is approximately 65 percent complete.

?Development well drilling is underway. Production from the development is expected to commence in the 2017 timeframe,? the statement said

Elsewhere, Husky said that at the MDA, MBH and MDK gas fields, located in the same block the tendering process for a floating production vessel has been completed and is awaiting government approval. Tendering is underway for related engineering, procurement, construction and installation contracts.

?The company 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,? the statement said.

Production from the MDA, MBH and MDK fields is expected in the 2018 - 2019 timeframe, it added.

Combined net sales volumes from the BD, MDA, MBH and MDK fields are expected to be approximately 100 mmcf/day of gas and 2,400 boe/day of associated NGLs once fully ramped up.

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

Editing by Reiner Simanjuntak