Abu Dhabi: Mubadala Petroleum and its partners will invest more than $1 billion (Dh3.67 billion) in the development of an offshore gasfield in Malaysia with first gas expected by third quarter of 2021.
According to an announcement on Wednesday, the Pegaga gasfield development in Block SK 320 will be taken up by Mubadala Petroleum, in partnership with Malaysian companies Petronas Carigali and Sarawak Shell Berhad.
“The Pegaga gas project is Mubadala Petroleum’s first development in Malaysia and represents an important milestone for us to have brought Pegaga from discovery to the point of sanction with the support from Petronas and our partners,” Bakheet Al Katheeri, CEO of Mubadala Petroleum, said in a statement on Wednesday.
The Pegaga gasfield is located in the Central Luconia province, offshore Sarawak, at about a 108-metre water depth and with a gas capacity of 550 million standard cubic feet of gas per day plus condensate.
As part of the development of the project, Mubadala Petroleum has issued the letter of award for the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contract to Sapura Fabrication Sdn Bhd, a wholly owned subsidiary of Sapura Energy Berhad.
Mubadala Petroleum, owned by the government of Abu Dhabi, has assets across eight countries with a primary focus on the Middle East and south-east Asia. In 2017, the company produced 320,000 barrels of oil per day.