The company currently has a petroleum contract in place with CNOOC for Block 29/26 which covers the fiscal framework for exploration and development of oil and gas.
Under the agreement for the Liwan 3-1 field development, Husky has agreed to operate the deep water portion of the project involving development drilling and completions, subsea equipment and controls, and subsea tie-backs to a shallow water platform.
CNOOC will operate the shallow water portion of the project including a shallow water platform, approximately 270km subsea pipeline to shore, and the onshore gas processing plant.
Husky continues to hold 49% working interest for Liwan 3-1, and first gas from the Liwan 3-1 development is anticipated in late 2013, ramping up through 2014.
