Husky Energy has signed a Production Sharing Contract (PSC) for a new exploration block offshore China. Block 16/25 is located in the Pearl River Mouth Basin, about 150 kilometres southeast of the Hong Kong Special Administrative Region.
The Company expects to drill two exploration wells on the shallow water block during the 2018 timeframe, in conjunction with two planned exploration wells at the nearby exploration Block 15/33.
Husky is the operator of both blocks during the exploration phase, with a working interest of 100 percent. In the event of a commercial discovery, its partner CNOOC Limited may assume a participating interest of up to 51 percent during the development and production phase.