You really suck at what you said:
Credit: online.wsj.com
CNOOC makes gas discovery in Qiongdongnan basin
HOUSTON, Mar. 19
03/19/2014
By OGJ editors
CNOOC Ltd. has made a natural gas discovery in the east Lingshui Sag of the deepwater area in the South China Sea’s Qiongdongnan basin.
The Lingshui 17-2-1 discovery well, drilled in 1,450 m of water, was completed at a depth of 3,510 m and encountered the gas reservoir with 55 m of total thickness.
CNOOC said, “The discovery has not only proven the exploration potential of structural and lithologic trap in central Canyon channel of Lingshui Sag, but also further confirmed the good exploration prospects in deepwater area of Qiongdongnan basin.”
CNOOC makes gas discovery in Qiongdongnan basin - Oil & Gas Journal
and this:
Credit: article.wn.com
OilVoice | Husky Energy delivers production at the Liwan Gas Project in the South China Sea
Husky Energy (TSX:HSE) and CNOOC Limited have commenced first production at the landmark Liwan Gas Project in the South China Sea.
"Liwan is Husky's largest project to date and places us inside the door of one of the fastest growing energy markets in the world," said CEO Asim Ghosh. "It was a massive undertaking and is a great achievement for deepwater gas production in the Asia Pacific Region."
Located approximately 300 kilometres southeast of the Hong Kong Special Administrative Region, the project consists of three fields: Liwan 3-1, Liuhua 34-2 and Liuhua 29-1, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure.
The Liwan 3-1 field has started production, with initial natural gas sales expected to be approximately 250 million cubic feet per day (mmcf/day) gross and increasing to approximately 300 mmcf/day in the second half of 2014. Initial sales of condensates and natural gas liquids from Liwan 3-1 are expected to be approximately 10,000 to 14,000 barrels of oil equivalent per day (boe/day) gross.
The Liuhua 34-2 field will be tied into the Liwan infrastructure in the second half of 2014, subject to final approvals. Production from the Liwan 3-1 field is scheduled to go offline for approximately six to eight weeks to provide for the tie-in of the field.
Following the tie in of Liuhua 34-2, combined gas sales are anticipated to increase to approximately 340 mmcf/day (gross). Natural gas from both fields will be processed at the onshore gas terminal at Gaolan and sold to the mainland China market, with initial gas production covered by fixed-price gas sales agreements.
Total gas sales are expected to rise towards a range of 400 to 500 mmcf/day (gross) with the planned tie-in of the Liuhua 29-1 field in the 2016-2017 timeframe.
Production from Liwan will contribute to the Company's growth this year as per overall guidance. The startup was achieved during one of the most extreme weather seasons in recent history in the South China Sea. Husky expects to achieve the lower end of its Asia Pacific production guidance of 35,000 to 45,000 boe/day.
Husky holds a 49 percent interest in the Production Sharing Contract (PSC) for the Liwan Gas Project and operates the deepwater infrastructure. Its partner CNOOC Limited holds a 51 percent interest in the PSC and operates the shallow water facilities and onshore gas terminal. The first stage of the US$6.5 billion project connecting the Liwan 3-1 field and work to date to tie in the Liuhua 34-2 field have been completed on budget.
The Company continues to advance a rich portfolio of opportunities in the Asia Pacific Region, including shallow water gas developments offshore Indonesia and exploration prospects offshore Taiwan.
QUICK FACTS:
- Husky's working interest in the Liwan Gas Project is 49 percent.
- Initial gas sales of approximately 250 mmcf/day (gross) from Liwan 3-1 is expected to rise to about 300 mmcf/day in the second half of 2014. It is then expected to increase to about 340 mmcf/day (gross) following the Liuhua 34-2 tie-in and rise to a range of 400 to 500 mmcf/day (gross) once Liuhua 29-1 is online.
- Husky's share of sales gas from the Liwan project in 2014 is expected to be in the range of 20,000-25,000 boe/day, including cost recovery. Liquids production net to Husky is expected to be in the range of 5,000-7,000 boe/day, including cost recovery.
- The Liwan 3-1 and Liuhua 34-2 gas sales price is US$11 to $13 per thousand cubic feet (mcf) in the initial five contract years, then floating referenced to the Guangdong City Gate price thereafter. Natural gas liquids will initially be sold to the mainland China market at competitive market pricing.
- Negotiations are underway for the Liuhua 29-1 gas sales contract.
- Husky expects to recover approximately $800 million in exploration costs in the first 18 months of production.
- Operating costs are expected to be approximately 10 percent of gross revenues.
- Royalties/taxes are expected to be approximately 20 percent of gross revenues.
