facebook
twitter
rss
account
search
search
 

Husky, CNOOC in South China Sea deal

Aug. 8, 2006 at 9:51 AM   |   Comments

CALGARY, Alberta, Aug. 8 (UPI) -- Canada's Husky Energy signed three petroleum contracts Tuesday with the China National Offshore Oil Corporation for exploring the South China Sea.

The three exploration blocks cover about 16,871 square kilometers, which includes an area by the Pearl River Mouth Basin, where Husky already has a block. The two other blocks are located in the Ying Ge Hai Basin, west of Hainan Island.

"The acquisition allows Husky to enhance its position and expand its exploration in natural gas prone basins, close to existing markets," said John Lau, chief executive of Husky.

Under the agreement, the Canadian company will drill one exploration well in each of the Ying Ge Hai blocks and two wells on the Pearl River block within the next three years. Husky will fully fund the exploration costs, while CNOOC will retain the right to back into any future development with a 51 percent interest.

Topics: John Lau
© 2006 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian currency crashes Russian currency crashes
2
Navy tests MQ-8C unmanned helos Navy tests MQ-8C unmanned helos
3
New submarine set for commissioning New submarine set for commissioning
4
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
5
Report: U.S. on path to energy independence Report: U.S. on path to energy independence
Trending News
Around the Web
x
Feedback