Offshore Indonesia

Husky has interests in three production sharing contracts in Indonesia. The Madura Strait PSC contains two gas discoveries, Madura BD and Madura MDA. The East Bawean II and North Sumbawa II PSCs are recently acquired exploration blocks. These blocks increase Husky’s total area in Indonesia to 12,076 square kilometres.

Madura Strait

Husky has a 50 percent interest in the 2,795 square kilometres Madura Strait PSC, offshore East Java. Two natural gas fields have been discovered on this block. The larger of these is the Madura BD field which was granted commercial status and had a development plan approved by the Indonesian government in 1997.

In 2008, Husky reached an agreement with CNOOC to jointly develop the Madura BD field, and further explore the Madura Strait PSC. CNOOC acquired a 50 percent equity interest in Husky Oil (Madura) Ltd. which holds a 100 percent interest in the Madura Strait PSC.
Husky has been involved in negotiations to establish an extension to the PSC.

Government approval is expected soon. Production is expected to come on stream approximately three years after the agreements are approved. Husky signed three 20-year agreements for the sale of natural gas from its Madura BD field in 2007. The three contracts total 100 million cubic feet per day.

East Bawean II

In September 2006, the Company signed a PSC with the Government of Indonesia for the East Bawean II block. The 4,255 square kilometres block is in the North East Java Basin, approximately 200 kilometres north of the Madura Strait PSC.

The PSC requires the acquisition of 1,400 square kilometres of 3-D seismic, and the drilling of two exploration wells within the first three years of the contract. Husky completed a 1,410 square kilometres 3-D seismic program in December 2007 in preparation for drilling in 2009. The Company has secured a jack-up drilling rig to drill two exploration wells in mid-2009.

North Sumbawa II

Husky executed a PSC in November 2008 with the Government of Indonesia for the North Sumbawa II block. The block covers 5,058 square kilometres in the East Java Basin approximately 300 km east of Madura Strait PSC.

Quick Facts

Madura Strait

Area: 2,763 sq kms
Husky working interest: 50%
Probable reserves: (50% w.i.)
(as of December 31, 2008)

Natural gas: 258 bcf
Liquids: 11.0 mmbbls

Exploration Blocks

East Bawean II PSC

Area: 4,255 sq kms

Sumbawa II PSC

Area: 5,058 sq kms