Canada-based Husky Energy has signed an agreement for a new exploration block in the Pearl River Mouth Basin, offshore China.
Under production sharing contract (PSC), the company intends to drill two exploration wells on the Block 16/25, a shallow water block, during the 2018 timeframe.
The Block 16/25 is said to include a total area of 44 km² with a water depth of about 100m. The wells will be drilled along with two other planned exploration wells at the exploration Block 15/33.
With 100% working interest, Husky will serve as an operator for both blocks during the exploration phase.
When commercial discovery happens, the company will partner with CNOOC, which is expected to hold up to 51% during the development and production phase.
Based in Calgary of Alberta, Husky Energy operates upstream and downstream businesses in Canada, the US and the Asia Pacific region.
In the Asia Pacific region, the company is focusing on the producing Liwangas project in the South China Sea. The firm is also looking to further progress its chances offshore Indonesia.
In May 2016, Husky Energy agreed to divest C$595m ($461m) worth of assets in southwest Saskatchewan to oil and gas firm Whitecap Resources.
The deal included selling of stakes in the assets, comprising of about 1,900km of pipeline in the Lloydminster region, 4.1 million barrels of oil storage capacity at Hardisty and Lloydminster, and other ancillary assets, to Cheung Kong Infrastructure and Power Assets Holdings (PAH).