Husky Energy installs offshore platform in Indonesia. Production set for 2017

  • Exploration & Production

Canadian oil and gas firm Husky Energy has moved a step forward towards production from its offshore gas-condensate project in Indonesia.

According to the company, the jacket and the wellhead platform for the Madura Strait BD project have been installed at the offshore location in around 55 meters of Water. Next up, development drilling, set to start soon.

In a statement on Monday, Husky said the project remained on target for first production in 2017.

The BD field is the first of several gas developments Husky is working on offshore Indonesia. Husky says that fixed price, set volume gas sales agreements are in place for the BD field, which is expected to produce net peak production of about 40 million cubic feet per day (mmcf/day) of gas and 2,400 barrels of oil equivalent (boe/day) of liquids.

“Our Indonesia gas developments represent some of the strongest growth opportunities in our deep portfolio and are particularly strategic in the current commodity price environment,” said CEO Asim Ghosh.

FPSO 30 percent done

Construction of an FPSO vessel to process gas and liquids production from the field is approximately 30 percent complete, and all major long-lead time items have been ordered.

Husky says it continues to progress a series of other gas developments offshore Indonesia that are expected to add production in the 2017-2019 timeframe.

A tendering process is underway for a floating production vessel and related engineering, procurement, construction and installation contracts for the combined MDA-MBH fields, also located in the Madura Strait. According to the company, the MDA-MBH fields are expected to produce about 50 mmcf/day (net) at peak production, and a fixed price, set volume sales gas agreement is in place.

A third discovery, the MDK field, is planned to be tied into the MDA-MBH field infrastructure. A plan of development has been approved, and the field is expected to produce approximately 10 mmcf/day (net) at peak. A gas price/volume contract is being negotiated.

Longer term, the Husky Energy has four other Madura Strait discoveries that are under evaluation for development.

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