Mubadala Petroleum and its partners PETRONAS Carigali and Sarawak Shell Berhad have reached the final investment decision for the Pegaga gas field development
The project, located in Block SK 320, offshore Malaysia, will now proceed to the construction and installation stage, the company informed.
Mubadala Petroleum and its partners are expected to invest in excess of USD 1 billion into the development with first gas expected by third quarter of 2021.
Dr Bakheet Al Katheeri, CEO of Mubadala Petroleum, said: “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. Our efforts will now be directed to working closely with our partners and contractors to deliver Pegaga into production on budget and time but most importantly safely.”
The Pegaga gas field is located in the Central Luconia province, offshore Sarawak at about 108 meter water depth.
The development concept comprises of 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 fluids will be transferred through a new 38 inch subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu.
Mubadala Petroleum is the operator of Block SK 320 with 55 percent interest, PETRONAS Carigali holds 25 percent, and Sarawak Shell Berhad 20 percent interest respectively.