RE:RE:RE:RE:Zacks says sell Cenovus...mrbb The gas market was being flooded with LNG which created huge uncertainties about the future competitiveness of the project and led to the dispute. In the end HSE and CNNOC did come to an agreement that resulted in a realatively small ~13% haircut in the contract pricing but also the two stakeholders agreed to continue to expand the project. It was a tough call but HSE did threaten legal action, and ultimately they got a very reasonable outcome considering the situation at the time.
>>>CALGARY, Alberta (Bloomberg) -- The end of a dispute over prices from an offshore Chinese energy project resolves an overhang on shares of Husky Energy Inc. and prospects for natural gas development in the Asian nation. Husky, the Canadian producer controlled by Hong Kong billionaire Li Ka-Shing, on Tuesday announced an agreement that will lower prices paid for gas output from the deepwater Liwan project. That settles a discord with China’s state-owned Cnooc Ltd. that took investors by surprise in April, when Husky said Cnooc was seeking to pay lower prices than stipulated by an existing contract. Husky also said Tuesday that the companies will develop Liuhua 29-1, a field at Liwan, adding to the project’s growth. The expansion of Liwan and the price reduction of about 13% from the prior contract, less than the 30 to 50% cut investors had assumed, are both positive for Husky, according to FirstEnergy Capital Corp. analyst Michael Dunn. Foreign operators in China also broadly benefit from the deal, which sends a strong statement about the country’s commitment to growing indigenous gas supplies, analyst Ben Wilson of RBC Dominion Securities Inc. said in a note.“It’s a lot better than people feared,” Dunn said in a phone interview. Husky’s stock should outperform peers on Wednesday on clarity over pricing and Liuhua 29-1’s advancement, which was uncertain with Asia awash in cheap LNG cargoes that compete with domestic supplies, he said. “That project’s fate prior to these negotiations was anything but clear because the need for that gas in mainland China is not clear, either.”
https://www.worldoil.com/news/2016/8/3/husky-cnooc-resolve-liwan-gas-dispute-by-lowering-prices