Husky gets approval of contract award for BD field FPSO vessel
Friday, July 25 2014 - 01:22 AM WIB
Canadian oil and gas firm said that progress continued on the shallow water gas developments in the Madura Strait Block, offshore East Java.
The company said in a statement obtained Friday that work related to the BD field engineering, procurement, installation and construction contract is ongoing and approximately 20 percent complete.
Husky added it has received final regulatory approval from the government of the contract award for a field floating, production, storage and offloading (FPSO) vessel to develop the BD field in the Madura Strait Block.
?Tender plans for the MDA and MBH development projects have been approved by SKK Migas, the Indonesia oil and gas regulator, and the tendering process has commenced,? the statement said.
The Gas Sales Agreement for the first tranche of gas sales is being negotiated following the signing of a corresponding Heads of Agreement in the first quarter of 2014, it added.
Planning for exploration work, including a 3-D seismic survey, on the Anugerah contract area is in progress, Husky said.
Husky has 40 percent interest in the Madura Strait block.
During the first quarter of 2014, Husky signed a PSC for the Anugerah contract area. The contract area covers approximately 8,215 square kilometers and is primarily offshore East Java, with water depths of up to 1,400 meters. The main prospective locations are in water depths of 800 to 1,300 meters. The contract area is located approximately 150 kilometers east of the Madura Strait Block. Under the PSC, Husky has an obligation to carry out seismic surveys to assess the petroleum potential of the exploration block within the first three years.
Editing by Reiner Simanjuntak