Friday, January 13, 2006

Li Ka-shing boosts oil & gas investment in Indonesia

Husky Energy Inc, a Canadian-based energy and energy-related company controlled (34.6%) by Hong Kong tycoon Li Ka-hing, recently announced its plan to invest C$75 million (US$64.2 million) to develop its Indonesia’s Madura Strait exploration. It seems small compared to the company’s total spending of C$2.2 billion for the whole 2006.
But the Indonesia investment is more than half of its total investment in international market at C$140 million and well above its China and East China Seas investment of C$57 million.
Husky’s Madura Strait block is located in the East Java Sea about 40 kilometres northeast of the island of Java and covers an area of 2,794 square kilometres.In October 2004. Husky purchased its partner's 68.6 percent interest in the production-sharing contract (PSC) to obtain 100 percent ownership of the block at US$50 million.
Two natural gas fields have been discovered on the block. The larger of the two gas fields, Madura BD, has probable reserves of 212 BCF of natural gas and 12.2 million barrels of natural gas liquids. Husky anticipates that an additional 303 BCF of natural gas and 10.8 million barrels of natural gas liquids resources within the same field will be reclassified as probable reserves.
The MDA field has discovered resources of 150 BCF which could potentially be produced into the East Java gas pipeline.



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