Abu Dhabi-headquartered Mubadala Petroleum has successfully commenced its first gas production from the Pegaga gas field in Block SK 320 in offshore Malaysia, it said on Monday.
The $1 billion project is located in the Central Luconia province, offshore Sarawak, Malaysia at a depth of about 108 metres under water.
The facility is designed for gas throughput of 550 million standard cubic feet of gas per day plus condensate.
“Having taken this project from discovery to development and now into production with the support of Malaysia Petroleum Management (MPM), Petronas, our partners and contractors, this demonstrates our deep capabilities, resilience and commitment as an energy provider,” said Mubadala Petroleum CEO Mansoor Mohamed.
The produced gas will be evacuated through a new 4km, 38-inch subsea pipeline tying into an existing offshore gas network and subsequently to the onshore Petronas LNG Complex in Bintulu.
“The project, which undertook its Final Investment Decision at the time when the oil market was still recovering in 2018, demonstrates the confidence of investors in Malaysia’s upstream industry. The country’s ecosystem also proved its resiliency with the successful design and fabrication of facilities completed during the peak of the COVID-19 pandemic,” said senior vice president of Malaysia Petroleum Management Mohamed Firouz Asnan.
Mubadala Petroleum has been present in Malaysia since 2010 and is the operator of Block SK 320 with a 55 per cent interest. Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds 25 per cent, with Sarawak Shell Berhad holding the remaining 20 per cent interest.
