Thursday 14 September 2017

Husky Energy is limbering up for a four-well oil exploration campaign in the Pearl River Mouth basin in the South China Sea.

Jonathan McKenzie, the company's chief financial officer, said the plan is to drill four wells in 2018 in Blocks 15/33 and 16/25.

Husky has had a presence offshore China for several decades and currently generates production from the Liwan gas project and Wenchang oilfield.

Blocks 15/33 and 16/25 are shallow-water areas, and the idea is to drill two wells in each permit.

The Canadian company has said previously that both blocks are oil prone, and in shallow water, and there is a floating production, storage and offloading vessel working in the area.

If the wells are a success, a fast-track development could follow.