KUALA LUMPUR (March 21): Mubadala Petroleum announced on Monday (March 21) that it has successfully commenced first gas production from the Pegaga gas field in Block SK 320, offshore Malaysia.

As a key strategic development for the local energy sector, it said Pegaga will be a key producing field supplying gas to Petronas LNG Complex, in Bintulu, Sarawak, Malaysia.

Mubadala Petroleum chief executive officer Mansoor Mohamed Al Hamed said in a statement that the Pegaga achievement is a landmark for the Abu Dhabi headquartered international energy company.

“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.

“With our strategic focus on gas as a key bridge fuel in the energy transition, this achievement reflects our ambition for the future as a long-term investor and strategic energy partner,” he said.

Petronas senior vice president of MPM Mohamed Firouz Asnan said the project, which undertook its final investment decision at the time when the oil market was still finding its footing in 2018, demonstrates the confidence investors have in Malaysia’s upstream industry.

“The facilities were fully designed and fabricated in the country — implemented during the toughest period caused by the Covid-19 pandemic, underscores the resiliency of the country’s ecosystem,” he added.

Mubadala Petroleum has been present in Malaysia since 2010 and is the operator of Block SK 320 with a 55% interest.

Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds 25%, with Sarawak Shell Berhad holding the remaining 20% interest.

The Pegaga gas field is located in the Central Luconia province, offshore Sarawak, Malaysia at about 108-meter water depth. The development concept comprises an Integrated Central Processing Platform (ICPP) consisting of an 8-legged jacket. The facility is designed for gas throughput of 550 million standard cubic feet of gas per day plus condensate. The produced gas will be evacuated through a new 4 KM, 38-inch subsea pipeline, tying in to an existing offshore gas network and subsequently to the onshore Petronas LNG Complex in Bintulu.

At the height of the pandemic in Malaysia, the jacket and wellhead deck which were constructed in Lumut and Kuching fabrication yards, were installed in April 2020, followed by the Pegaga Development Drilling campaign. The ICPP float-over and installation was then safely completed in August 2021.