Husky says FPSO tender awaits govt approval

By Romel S. Gurky

Canadian oil, gas firm Husky Energy reported on Wednesday that during the first quarter of 2014, progress continued on the shallow water gas developments in the Madura Strait Block, offshore East Java.

According to the company?s first quarter report, work related to the BD field engineering, procurement, installation and construction contract is ongoing and approximately 12 percent complete.

The last outstanding tender for the BD field floating production, storage and offloading (FPSO) vessel is awaiting final government approval.

Tender plans for? the MDA and MBH development projects are under review by SKK Migas, the Indonesia oil and gas regulator.?

The Government of Indonesia appointed a lead distributor for the majority of the gas to be produced from the MDA and MBH fields and a Heads of? Agreement has been signed for the first tranche of gas sales, the company reported without disclosing the name of the distributor.

Husky has 40 percent interest in 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 Alexander Ginting