CNOOC buys 50% stake in Husky's Indonesian project

Canadian-based Husky Energy Inc, in which Hong Kong billionaire Li Ka Shing and his holding company Hutchison Whampoa<13> own a majority stake, announced that China National Offshore Oil Corporation (CNOOC)<883> acquired a 50% equity interest in Husky Oil (Madura) Limited for US$125 million, sources reported.

The Chinese Securities News cited the company's statement that an agreement has been reached with CNOOC Ltd. to jointly develop the Madura BD gas and natural liquids field located offshore East Java, Indonesia. Husky Oil (Madura) Limited is the sole owner of this field. CNOOC will continue the gas development and exploitation in Madura Strait PSC.

Last year, Husky Energy has signed three trade agreements with the Indonesian authorities on natural gas, which allows the company to sell 100 million cubic feet of natural gas to buyers in East Java per day.

CNOOC is one of the largest state-owned oil companies in China, as well as the largest offshore oil and gas producer. It is authorized to cooperate with foreign partners for oil and gas exploitation in China's offshore areas.