| Husky Energy's Recent Gas Discovery | | | | While Husky Energy may be Calgary-based, it |
| | | | remains controlled by Hong Kong billionaire |
| Spurs More Exploration Activity | | | | Li Ka-shing. China's big announcement in mid |
| | | | July invited the more autonomous foreign oil |
| In June, Husky Energy announced a deep gas | | | | companies to explore in as many as nine |
| discovery beneath the South China Sea, about | | | | blocks in northwestern China. |
| 155 miles south of Hong Kong. The area had | | | | |
| been abandoned decades earlier when shallower | | | | The target is the Xinjian's Tarim Basin, |
| wells had come up dry. | | | | which has proven reserves of six billion tons |
| | | | of oil and eight trillion cubic meters of |
| Fu Chengyu, Chairman of Husky's Chinese | | | | natural gas. Analysts heralded this as |
| partner China National Offshore Oil Corp | | | | China's biggest step forward in cooperating |
| (CNOOC) called the gas discovery "a | | | | with major foreign oil and gas companies |
| tremendous breakthrough for us." The find may | | | | since 1994. |
| reportedly contain 3.5 trillion cubic feet of | | | | |
| gas. Last week, Husky Energy and CNOOC signed | | | | China is eager to move these projects further |
| three new production-sharing contracts to | | | | in order to keep its 2200-mile natural gas |
| drill for oil and gas in deepwater blocks in | | | | pipeline running at capacity to supply its |
| the eastern and western South China Sea. | | | | major coastal cities in eastern China. |
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