KUALA LUMPUR: Abu Dhabi international energy company Mubadala Petroleum has commenced its first gas production from the Pegaga gas field in Block SK 320, offshore Malaysia.
In a statement, Mubadala Petroleum said this marks the safe and successful culmination of a challenging gas project during a period in which the oil company navigated the challenges of the global pandemic.
As a key strategic development for the local energy sector, Pegaga will be a key producing field supplying gas to Petronas LNG Complex in Bintulu, Sarawak, Malaysia.
Chief executive officer Mansoor Mohamed Al Hamed said Pegaga's achievement is a landmark for Mubadala Petroleum.
Mansoor said having taken this project from discovery to development and now into production demonstrates the company's 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 Malaysia Petroleum Management (MPM) senior vice president Mohamed Firouz Asnan said Pegaga is a major producer contributing to sustaining Malaysia's gas supply for many decades to come.
Firouz said the project, which undertook its final investment decision when the oil market was still finding its footing in 2018, demonstrates the confidence that 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 per cent interest.
Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds 25 per cent, with Sarawak Shell Bhd holding the remaining 20 per cent interest.
According to Mubadala, the Pegaga gas field is located in the Central Luconia province offshore Sarawak 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 a 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.