Husky sees E. Java gas to start flowing in 2014

Canadian oil, gas firm Husky Energy reported on Tuesday that gas production from Madura Strait PSC offshore East Java is expected to start in 2014.

Husky and its partner CNOOC had received a 20-year extension for the Madura Strait PSC until 2032 and a Plan of Development has been approved for the block.

The front end engineering was completed in the second quarter of 2010 with the engineering tendering process to begin in early 2011, the company said.

In 2007, Husky signed gas sales agreements with three local companies for the sale of 100 million cubic feet per day of natural gas production from Madura Strait PSC.

Both Husky and CNOOC agreed to sell a 10% equity stake in Husky Oil (Madura) Ltd. to Samudra Energy Ltd. Following the completion of the sale, Husky and CNOOC respectively hold a 40% equity interest in Husky Oil (Madura) Ltd. with the remaining 20% balance Samudra. This sale closed in January 2011. (alex)