posted on 12/14/2009
Now that the work on Husky Energy's North Amethyst subsea tie-back is complete, the Canadian operator expects the drilling of development wells to be a major focus in 2010. Production from North Amethyst is expected in 1Q 2010 and should ramp up during the year as new wells are tied in, according to Husky. For 2010, Husky has allocated C$485 million in capex for Canada's East Coast and frontier work. In 2009, the operator forecast spending C$800 million in capex for the same region, but its later 2009 guidance indicated the figure was C$590 million.
Another area Husky expects to spend vast amounts of capex in 2010 is Southeast Asia, where it expects numbers to total C$660 million for 2010. The 2009 intended commitment for the region was C$500 million, and Husky dropped C$20 million more than expected, according to its 2009 guidance.
Work in Southeast Asia is expected to include awarding of engineering and construction contracts to progress the Liwan Gas Project on Block 29/26 in the South China Sea. Project sanction is expected in early 2010. The West Hercules deepwater rig will drill six to eight exploration, delineation and development wells during 2010 in the South China Sea. Husky expects to develop the recently discovered LiuHua gas field in conjunction with Liwan gas field, with the two fields sharing development facilities.
By far, the bulk of Husky's expected 2010 capex is earmarked for Western Canada, with the operator forecasting a spend of C$1.2 billion, well up from the 2009 forecast of C$725 million and the 2009 guidance of C$885 million. In Western Canada, the company's capital program is focused on growing the upstream production by applying enhanced oil recovery (EOR) technology.
Husky says significant progress on the Sunrise Oil Sands Project has been made and that a review of the project indicate it has achieved material reductions in capital costs and improved project efficiencies. Front end engineering and design work will be completed for Sunrise in 1Q 2010, targeting first production in 2014.
Source: http://www.oilonline.com/News/NewsArticles/articleType/ArticleView/articleId/24491/Big-spending-in-Canada-Southeast-Asia.aspx
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