As a result of strong cooperation between Husky and its long-time partner CNOOC, the seven-well Liuhua 29-1 project was completed safely, ahead of schedule and CAN$100 million below budget despite the COVID-19 pandemic and associated global economic volatility. First gas is expected to be delivered to end users starting in early November.
“The startup of Liuhua 29-1 just two years after the project was sanctioned is a significant milestone for Husky and CNOOC,” said CEO Rob Peabody. “This third field will provide Husky with additional stability in funds from operations.”
The 29-1 field is tied into the existing infrastructure at Liwan, which includes the Liwan 3-1 and Liuhua 34-2 fields within Block 29/26, approximately 300 km southeast of the Hong Kong Special Administrative Region.
In total, the Liwan Gas Project is expected to deliver around CAN$950 million in funds from operations in 2021, Husky working interest. The Liuhua 29-1 field alone is expected to generate CAN$1.3 billion in funds from operations for Husky over the next decade.
The new production will also provide a clean-burning source of energy to the growing market in southern China, and moves Husky closer to its 25% greenhouse gas intensity reduction target.
Year to date in 2020, total production from the two producing fields at Liwan is approximately 390 million ft3/d of natural gas and 16 000 bpd of associated liquids. Total production in 2021 is expected to be 450 million ft3/d and 17 500 bpd of liquids.