Husky says E. Java gas sales negotiation continues

Canadian oil firm Husky Energy said it was continuing with negotiations with buyers to establish natural gas sales agreements for its Madura Straits gas block offshore East Java.

The company said in its quarterly report that during the third quarter of 2005, development engineering re-validation work had commenced for the production facilities at the Madura natural gas development project.

Husky is reportedly negotiating with state electricity firm PLN to supply gas to the former?s proposed 500-MW Pasuruan power plant in east Java and also with state gas distribution firm PGN.

Husky, in its earlier release said that two gas fields, Madura BD and MDA, with total proven and probable reserves of 360 BCF. Husky is the operator and 100 percent interest holder of Madura Straits PSC. (alex)