Husky Energy, the Canadian oil company controlled by Hong Kong billionaire Li Ka-Shing, said it will decide by the end of the year if it will spin off Asian oil and gas assets. 

'We’re evaluating whether a spin-off and a separate listing of our Asian assets represent the best way to maximize value for shareholders,' Chief Executive Officer Asim Ghosh said on a conference call. The company said in February that a decision on the spin-off would come by the middle of this year.

Husky declined C$1.19 to C$25.50 at 1:53 p.m. on the Toronto Stock Exchange. Husky earlier fell as much as 5.8 percent to C$24.87 in Toronto trading after reporting lower second-quarter earnings than analysts estimated. Net income fell 38 percent to C$266 million ($257 million), or 31 cents a share, from C$430 million a year earlier, Calgary- based Husky said today in a statement. Per-share profit was 12 cents below the average of 10 analyst estimates compiled by Bloomberg.

Husky is also open to buying assets, Ghosh said. The prime focus of acquisitions at this point will be 'currently flowing barrels,' he said. 

In China, Husky is CNOOC's partner in the producing Wenchang oil field in the South China Sea. The company's crown jewel, however, is the Liwan gas field (Block 29/26), 250 km (155 miles) southeast of Hong Kong. The field, discovered four years ago, is estimated to have reserves of up to 6 trillion cubic feet. Husky completed front-end engineering for the project in 2009 and sanction is expected this year for project start-up in 2013.

Husky has interests in three production sharing contracts in Indonesia. The Madura Strait PSC contains two gas discoveries, Madura BD and Madura MDA. The East Bawean II and North Sumbawa II PSCs are recently acquired exploration blocks. These blocks increase Husky’s total area in Indonesia to 12,076 sq kms.

Source: energy-pedia