Husky proves Liwan as giant field off China
A delineation well has confirmed the giant nature of Husky Oil China's 2006 deepwater Liwan 3-1-1 gas discovery in
the South China Sea.
Husky Oil China, which has secured the West Hercules semisubmersible for 3 years with extension options, is preparing
front end engineering and design work for the Liwan development project for tender after it obtains results from the
next appraisal well on Block 29/26. Then the rig will drill other exploration wells.
The company previously said it could recover 4-6 tcf of gas at Liwan, which it said opened a new hydrocarbon province
in the south-western Pearl River Mouth basin. The first appraisal well, drilled and tested in 1,345 m of water 350 km
southeast of Hong Kong, was drilled to 3,887 m true vertical depth below sea level.
The Liwan 3-1-2 well, which cut 36 m of net gas pay in the main reservoir zone, flowed at an equipment-restricted
rate of 53 mm cfpd, indicating that deliverability could exceed 150 mm cfpd. The predrill 3D seismic interpretation
indicated a direct hydrocarbon response at the Liwan 3-1-2 location, which the company's analysis indicated was
present over a majority of the 55 sq km closure.
Block 29/26 covers 3,965 sq km and is one of six held by Husky Oil China in the South China Sea. China National
Offshore Oil Corp. has the right to participate in the Liwan development with up to a 51 % working interest. Husky
Oil China also holds one exploration block in the East China Sea.
Liwan is 330 km east of Hainan Island and 195 km east of Husky's Wenchang oil development.
