Husky to spend $600m to develop E. Java gas field

Calgary-based oil, gas firm Husky Energy will spend US$600 million within the next three years to bring its Madura BD gas field in Madura Strait PSC offshore East Java onstream in 2011, a company executive said on Tuesday.

Bill Watson, Husky’s VP Engineering & Project management told Petromindo.Com that the field would produce 100-110 MMCFD and 6,000 barrels per day of condensate. Gas produced from the field will all be sold to distributors PT.Inti Alasindo Energy (40MMCFD), PT Parna Raya (40MMCFD) and PGN (30MMCFD). Husky and the three companies signed gas supply HoA on Tuesday, where, under $2.1 billion, Husky would sell gas from the field starting 2011.

Raimo L. Keto, Husky Oil (Madura) Ltd. told Petromindo that gas from the field would be piped through 60-km pipeline to onshore East Java.

He added that Husky has submitted PoD on the block and still waiting for approval from the government.

Keto also said there is another discovery within the block called MDA that has the potential to become gas producer. “But more exploration works are needed to determine the discovery’s commerciality,” he said.

Husky has 100 percent stake in the block. (alex)