Husky and CPC enter joint venture agreement

December 18, 2012

Torys represented Husky Energy with a team that included Tony Cioni and Renee Matthews.

On December 18, 2012, Taiwan's state-run CPC Corp. and Husky Energy Inc., Canada's top oil and gas producer by output, will jointly explore for natural gas in a deepwater basin offshore southwestern Taiwan. A geological survey of the region will begin soon after the two companies sign an agreement later Tuesday in Taipei.

The Taiwanese company will retain the right to participate in any field development with a 50% working interest, if hydrocarbon reserves of a commercially viable scale are found.

Husky is active in exploring and producing from the deepwater regions of the Asia-Pacific. In South China Sea, it holds a 40% working interest in the producing Wencheng oil field, about 400 km southwest of Hong Kong, and is developing three natural gas fields collectively called the Liwan Gas Project, 300 km southeast of Hong Kong, jointly with Cnooc Ltd. It is also developing natural gas fields offshore Indonesia with Cnooc and Samudra Energy Ltd.

Taiwan, with virtually no natural resources, imports more than 95% of its energy needs, shipping in 14-15 billion cubic meters of liquefied natural gas annually, mostly from Qatar, Indonesia and Malaysia.

Further information can be found on the websites of Marketwatch and The Globe and Mail.

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