Husky updates progress in Madura Strait PSC

By Ruli Setiawan

Canadian oil and gas firm Husky Energy said on Wednesday that engineering and procurement works on the shallow water platform infrastructure at the BD field in the Madura Strait block, offshore East Java, have commenced and a tender for an FPSO vessel is awaiting final government approval.

?Negotiations for a gas sales contract for the combined MDA/MBH development on the Madura Strait block are progressing, with first production anticipated in the late 2016-early 2017 timeframe,? it added.

Husky said a new natural gas discovery made on the block in the fourth quarter is now being evaluated, along with four previous discoveries made in 2012. Husky has a 50 percent interest in the MBF discovery, which is located west of the MBH field.

The Madura Strait Block, in which the company holds a 40 percent interest, is the current focus for development. The BD field is being developed first, followed by the MDA field. Both fields will produce natural gas and gas liquids. The fields are being developed in partnership with CNOOC (as the operator) and an affiliate of Samudra Energy Ltd., a local Indonesian company.

Editing by Reiner Simanjuntak