Asim Ghosh

On May 21, Canadian-based integrated E&P company Husky Energy Inc. (Toronto: HSE) named Asim Ghosh president and chief executive, effective June 1. Ghosh succeeds retiring president and CEO John Lau, who will focus on new business for the Canadian E&P in the Asia-Pacific region.

Ghosh is on Husky Energy's board and was managing director and CEO of Vodafone Essar Ltd.

Lau has been a director of Husky Energy since 2000. Prior to joining Husky in 1992, Lau held senior executive roles within the Cheung Kong (Holdings) Ltd. and Hutchison Whampoa Ltd. group of companies.

Husky co-chairmen Victor Li and Canning Folk are confident in Husky's future under the new leadership. "Mr. Ghosh has demonstrated his vast executive experience and sound business judgment on Husky's board of directors."

The chairmen also lauded Lau for his leadership. "John has built Husky into a successful and respected company on the global energy scene and he deserves the highest praise for its performance and success."

Husky Continues Offshore E&P Success

On May 31, Husky began first oil production from North Amethyst Field, offshore Newfoundland and Labrador. North Amethyst is the first satellite field development at Husky's White Rose project and was brought on production less than four years after discovery.

The first subsea tieback project in Canada, North Amethyst holds an estimated 90 million barrels of reserves (34.7 proven, 35.3 probable, 20 possible) as of December 31, 2009.

Husky operates White Rose and its satellite fields, including North Amethyst and West White Rose, with a 72.5% working interest and a 68.9% interest, respectively. Suncor Energy Inc., Calgary, (NYSE, TSX: SU) holds a 27.5% stake in White Rose Field and a 26.1% stake in the satellite fields. The Government of Newfoundland and Labrador, through Nalcor Energy—Oil and Gas, holds a 5% working interest in the satellite fields.

Lau says, "Husky has partnered with Suncor and Nalcor Energy in developing this important energy resource. We will continue to examine other near-field tieback opportunities, including an assessment of the Hibernia reservoir sandstones beneath the main White Rose and North Amethyst fields."

Additionally, Husky Oil China Ltd., a subsidiary of Husky Energy, in a joint venture with CNOOC Ltd., has completed drilling and successful testing of its first appraisal well at the Liuhua 29-1 discovery in the South China Sea. Liuhua 29-1 Field is the company's third significant deepwater gas discovery in Block 29/26 in the South China Sea.

The first appraisal well tested gas at an equipment-restricted rate of 55 million cubic feet per day with indications that the well's future deliverability could be 60-70 million cubic feet per day.

Lau says, "The results from this well demonstrate the quality of the Liuhua reservoir. Further appraisal drilling planned for later this year will be required, to increase our understanding of the recoverable resource and provide us with the necessary reservoir characterization and data to prepare a plan of development for the field."

Husky and CNOOC have signed 11 production sharing contracts since 2001. The Chinese oil major has the right to participate in the development of any discovery with up to a 51% working interest. Husky retains a 40% working interest in the Wenchang area, in which Liuhua 29-1 is situated.

Husky Energy has energy assets in Western Canada, offshore Newfoundland, the United States, Greenland and South East Asia. As well, the company operates midstream and downstream segments in Canada, the U.S. and Asia-Pacific region.