Mubadala Petroleum and its partners Petronas Carigali and Sarawak Shell Berhad have reached the final investment decision for the Pegaga gas field development in block SK 320 offshore Sarawak.
The project will now proceed to the construction and installation stage.
Mubadala Petroleum is the operator of block SK 320 with 55% interest, Petronas Carigali holds 25%, and Sarawak Shell Berhad holds 20%.
The partners are expected to invest more than $1 billion into the development with first gas expected by 3Q 2021.
Discovered in 2013, the Pegaga gas field is in the Central Luconia province in about 108 m (354 ft) water depth.
The development concept consists of an integrated central processing platform consisting of an eight-legged jacket. The facility is designed for gas throughput of 550 MMcf/d of gas plus condensate. The produced fluids will be evacuated through a new 38-in. subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu.
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.”
Subsequently, Mubadala Petroleum has issued the letter of award for the engineering, procurement, construction, installation, and commissioning contract for the project to Sapura Fabrication Sdn Bhd, a wholly owned subsidiary of Sapura Energy Berhad.
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