Lau relocates to China as company plans expansion on heels of third gas discovery
John C.S. Lau plans to retire as president and CEO of Canada’s Husky Energy to relocate to Hong Kong where he will assume responsibility for leading the development of the company's businesses in the Asia-Pacific Region, including existing businesses in Indonesia and the South China Sea. A successor will be named by the company before Lau’s retirement takes effect.
China developments
Husky has made progress in its objective to create a material oil and natural gas business in the region. The company is leading the development of a deepwater natural gas discovery in Block 29/26 of the South China Sea, one of the largest discovered gas fields offshore China.
Earlier in February, Husky’s wholly-owned subsidiary, Husky Oil China Ltd., made its third gas discovery on Block 29/26. The Liuhua 29-1 exploration well was drilled 43 kilometers northeast of the Liwan 3-1 Gas Field and 20 kilometers northeast of the LH 34-2 Gas Field in a water depth of 723 meters. The well encountered a gross gas column of 145 meters, with a significant thickness of high quality gas charged reservoir, and an oil zone was encountered in a deeper reservoir. The well tested natural gas at an equipment restricted rate of 57 million cubic feet (MMcf) per day, with indications that the future deliverability of the well could exceed 90 MMcf per day.
Husky started exploring in offshore China in 2002. It signed a contract for Block 29/26 (2,230 square kilometers) in 2004. Additionally, Husky holds a 40% net working interest in a production block at the Wenchang oil field and 100% working interest in two other exploration blocks offshore China. Under the contract, CNOOC Ltd. has the right to participate in any field development projects for up to 51% working interest.
4Q09 Results
Husky Energy Inc. recently reported net earnings in the fourth quarter of 2009 were $320 million or $0.38 per share (diluted), compared to $231 million or $0.27 per share (diluted) in the same period of 2008. Cash flow from operations for the fourth quarter was $657 million or $0.77 per share (diluted), compared with $330 million or $0.39 per share (diluted) in the same period of 2008. Sales and operating revenues, net of royalties, were $3.61 billion, compared with $4.70 billion in the fourth quarter of 2008.
Husky is a Canadian-based integrated energy and energy-related company with upstream, midstream and refined products operations. The company operates primarily in the western provinces and offshore Canada’s East Coast, and has international exploration and development interests offshore China, Indonesia, and Greenland, and in the US.