Husky Energy unveils that it's planning to make a decision on spinning out its Chinese assets into a standalone company later this year, its chief executive said Thursday.

However, the final decision by the company to initiate a split is expected come by mid-year, Husky president and CEO John Lau revealed to a conference call to discuss the company's fourth-quarter results.

Husky found that the Liwan natural gas field off shore Hong Kong in 2006 and has revealed a constant stream of boosting exploration results in partnership with the China National Offshore Oil Corp.

Since then Husky has continued to rack up impressive exploration results on the Pearl River Delta.

The Liwan discovery well is reported to be capable of producing more than 140 million cubic feet per day, Husky claimed.

Gordon Houlden, the director of the University of Alberta's China Institute, quoted Canadians is more accustomed to hearing about Chinese companies buying Canadian assets.

As per the terms of Husky's leases, it is mandatory for it to relinquish 51 per cent of any Liwan discoveries to CNOOC.

The company's shares lost 35 cents, or a little more than one per cent, on the Toronto Stock Exchange to close at $26.59.