Mubadala Petroleum and its partners Petronas and Sarawak Shell have produced the first gas from the Pegaga gas field in Block SK 320 in Malaysian waters.
According to Mubadala Petroleum, Pegaga will be an important producing field that will supply gas to Petronas LNG Complex in Bintulu in the Malaysian state of Sarawak.
Located in the Central Luconia province, the Pegaga gas field lies in a water depth of around 108m. Its development concept includes an integrated central processing platform (ICPP) that features an eight-legged jacket.
Mubadala Petroleum has an operating stake of 55% in the SK 320 block. Petronas, through its subsidiary Petronas Carigali, has a 25% stake, while Sarawak Shell owns the remaining 20% interest in the offshore Malaysian block.
Mubadala Petroleum CEO Mansoor Mohamed Al Hamed said: “The Pegaga achievement is a landmark for Mubadala Petroleum. 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.”
The Pegaga platform can handle a gas throughput of 550 million standard cubic feet (mmscfd) of gas per day along with condensate.
The gas produced from the Pegaga gas field will be sent via a new 4km, 38-inch underwater pipeline that ties into an existing offshore gas network and eventually to the onshore Petronas LNG Complex.
Petronas Malaysia petroleum management senior vice president Mohamed Firouz Asnan said: “The project, which undertook its Final Investment Decision at a 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.”
Petronas said that beyond the Pegaga gas field, the company is implementing its Upstream Ambition 2030 plan to boost the production level of Malaysia to two million barrels of oil equivalent per day (boepd) from its present level of around 1.8 million boepd by developing various opportunities in the pipeline.
