Abu Dhabi-based Mubadala Petroleum has started producing gas from the Pegaga field offshore Malaysia. The facility has the capacity to produce 550 million standard cubic feet per day of natural gas and condensate. The gas produced will be connected to the existing offshore gas network via a new 4km, 38-inch subsea pipeline and then delivered to the onshore Petronas LNG complex in Bintulu.

In a statement, the company said the move marked the "culmination of a challenging natural gas project" during which Mubadala Petroleum grappled with the challenges of the global pandemic. “This project, from discovery to development to production now, with the support of Petronas, our partners and contractors, is a testament to our deep capability, resilience and commitment as an energy supplier,” said Mansoor Al Hamed CEO said. Mubadala Petroleum Corporation. "Our strategic focus on natural gas as a key bridge fuel for the energy transition reflects our ambition for the future as a long-term investor and strategic energy partner."

Mubadala Petroleum, a subsidiary of Abu Dhabi-based strategic investment company Mubadala Investment Company, has a natural gas-weighted portfolio with assets and operations in 11 countries, primarily in the Middle East and North Africa, Russia and Southeast Asia. It produces about 430,000 barrels of oil equivalent per day. In 2021 the company completed a $1 billion deal with Israel's Delek Drilling to buy a 22% stake in the Tamar field offshore the Eastern Mediterranean.

Mubadala Petroleum, which has been in Malaysia since 2010, is the operator of the SK320 block with a 55% interest. Petronas' subsidiary Petronas Carigali Sdn holds 25%, while Sarawak Shell Berhad holds the remaining 20%. The Pegaga gas field is located in the Central Lukonia province off the coast of Sarawak, with a water depth of about 108 meters. The development concept includes an Integrated Central Processing Platform (ICPP). The jacket and wellhead deck were constructed locally and installed in April 2020, followed by a Pegaga development drilling campaign. ICPP flotation and installation will be completed in August 2021. Keywords: engineering construction, engineering news

Pegaga will be a "key production field" for supplying gas to the Petronas LNG Complex in Bintulu and is expected to "make a significant contribution to maintaining Malaysia's gas supply for decades," the statement said. "The project's final investment decision came at a time when the oil market was still recovering in 2018, and it shows investors' confidence in Malaysia's upstream sector," said Mohamed Asnan, senior vice president of Petronas Petronas Management, Petronas. "The country's ecosystem has also demonstrated its resilience through the successful design and manufacture of facilities completed during the peak of the Covid-19 pandemic."Editor/XingWentao