Mubadala Approves Malaysian Gas Project
Abu Dhabi-based Mubadala Petroleum and partners Malaysian state Petronas and Sarawak Shell have taken the final investment decision for the Pegaga gas field development in Block SK 320, offshore Malaysia and expect to invest over $1bn in the project, Mubadala said March 21.
The project will now proceed to the construction and installation stage. Mubadala Petroleum is operator of Block SK 320 with 55% interest, Petronas has 25%, and Sarawak Shell 20% interest respectively. First gas is expected by 3Q 2021 and will help feed Malaysia LNG.
“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,” Mubadala Petroleum CEO Bakheet Al Katheeri said.
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 consisting of an eight-legged jacket. The facility is designed for gas throughput of 550mn ft3/d plus condensate. The produced fluids will be evacuated through a new 38-inch diameter subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu, Mubadala said.
Mubadala has issued the letter of award for the engineering, procurement, construction, installation & commissioning (EPCIC) contract for the Pegaga gas development to Sapura Fabrication, a wholly owned subsidiary of Malaysian contractor Sapura Energy.