Mubadala Petroleum starts gas production from Malaysia’s Pegaga field

Abu Dhabi-headquartered Mubadala Petroleum has successfully started gas production from the Pegaga gas field in Block SK 320, offshore Malaysia. In 2014, the company reported that it had found substantial gas resources in the gas field.

The Pegaga gas field 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 4km, 38-inch subsea pipeline tying into an existing offshore gas network and subsequently to the onshore Petronas LNG Complex in Bintulu.

Mubadala Petroleum, which has been present in Malaysia since 2010, is the operator of Block SK 320 and holds a 55 per cent interest in it. Petronas Carigali Sdn Bhd, a subsidiary of Petronas holds 25 per cent, with Sarawak Shell Berhad holding the remaining 20 per cent interest.

Mansoor Mohamed Al Hamed, CEO of Mubadala Petroleum, commented: “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.”

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 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.”