China has started gas production in South-China Sea; the Philippine has lodged a complaint to UN

The drilling rig located 325 km from Hong Kong, started its first production from the sea bottom onshore. The owners believe the deep oil field is under Chinese jurisdiction.

The biggest dispute in the region is between Beijing and Manila. Upon the advice from Washington the Philippines lodged a complaint against China to the International Court of Arbitration. China declared it would not participate in the arbitration and suggested bilateral frame.

Husky Energy and CNOOC Limited have started first production at the landmark Liwan Gas Project in the South China Sea. Husky holds a 49 percent interest in the Production Sharing Contract (PSC) for the Liwan Gas Project and operates the deepwater infrastructure. Its partner CNOOC Limited holds a 51 percent interest in the PSC and operates the shallow water facilities and onshore gas terminal.

Located approximately 300 kilometers southeast of the Hong Kong Special Administrative Region, the project consists of three fields: Liwan 3-1, Liuhua 34-2 and Liuhua 29-1, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure.
“Liwan is Husky’s largest project to date and places us inside the door of one of the fastest growing energy markets in the world,” said CEO Asim Ghosh. “It was a massive undertaking and is a great achievement for deepwater gas production in the Asia Pacific Region.”