Pegaga Gas Development in Malaysia Approved
Wednesday 21 March 2018
Mubadala Petroleum and its partners PETRONAS Carigali Sdn Bhd and Sarawak Shell Berhad have reached the Final Investment Decision for the Pegaga gas field development in Block SK 320, offshore Malaysia. The project will now proceed to the construction and installation stage.
Mubadala Petroleum is Operator of Block SK 320 with 55 percent interest, PETRONAS Carigali holds 25 percent, and Sarawak Shell Berhad 20 percent interest respectively. 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.
Mubadala Petroleum has been present in Malaysia since 2010. 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 evacuated through a new 38 inch subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu.
Subsequently, Mubadala Petroleum has issued the letter of award for the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contract for the Pegaga gas development to Sapura Fabrication Sdn Bhd, a wholly owned subsidiary of Sapura Energy Berhad.