Calgary-based Husky said late Tuesday it had signed preliminary gas sales deals with PT Parna Raya, PT Inti Alasindo Energy, and PT Perusahaan Gas Negara Tbk. The Canadian company also said it‘s negotiating an extension to the Madura Strait production sharing contract with the Indonesian government.

The Madura BD Field, off the coast of East Java, is estimated to contain 515 billion cubic feet of natural gas and 23 million barrels of liquids. When the field development is completed, production is estimated at 100 million cubic feet per day of gas and 6,500 barrels daily of liquids.

The natural gas will be processed through a floating production unit and will flow by a 60-kilometre pipeline to East Java, where it will be sold to to industrial customers.

The liquids will be shipped to markets in South East Asia by shuttle tanker.

Husky Oil (Madura) Ltd., a wholly owned unit of Husky Energy, operates the Indonesian field and holds a 100 per cent working interest in the project.

Husky Energy is an integrated oil and natural gas company, with oilsands operations, refineries, a string of gasoline stations in Western Canada, East Coast offshore oil developments as well as natural gas operations in Canada and abroad.

PIN/Oilweek.Com