Mubadala Petroleum starts gas production at flagship Malaysian project

By Amirtha P S, Desk Reporter
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Mubadala Petroleum
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Mubadala Petroleum, the wholly-owned subsidiary of Abu Dhabi’s sovereign wealth fund, has begun the first gas production from the Pegaga gas field in Block SK 320, offshore Malaysia.

The facility has the capacity to produce 550 million standard cubic feet of gas per day plus condensate. Gas produced will be directed through a new 4 Kilometre, 38-inch subsea pipeline tying into an existing offshore gas network and subsequently to the onshore PETRONAS LNG Complex in Bintulu.

The commencement of the gas production marks the safe and successful culmination of a challenging gas project, during a period in which Mubadala Petroleum navigated the challenges of the global pandemic. 

As a key strategic development for the local energy sector, Pegaga will be a main producing field supplying gas to PETRONAS LNG Complex, in Bintulu, Sarawak, Malaysia.

Mansoor Mohamed Al Hamed
Mansoor Mohamed Al Hamed
CEO – Mubadala Petroleum

“The Pegaga achievement is a landmark for Mubadala Petroleum. Having taken this project from discovery to development and now into production with the support of Malaysia Petroleum Management (MPM), PETRONAS, our partners and contractors, this demonstrates our deep capabilities, resilience and commitment as an energy provider. With our strategic focus on gas as a key bridge fuel in the energy transition, this achievement reflects our ambition for the future as a long-term investor and strategic energy partner.”

Mr. Mohamed Firouz Asnan, Senior Vice President of Malaysia Petroleum Management at PETRONAS, said, “On behalf of PETRONAS, I would like to congratulate Mubadala Petroleum and their partners on achieving this key milestone, as the Pegaga field is well-positioned to significantly contribute towards sustaining Malaysia’s gas supply for many decades to come.”

The gas project, which undertook its final investment decision at the time when the oil market was still recovering in 2018, demonstrates the confidence of investors in Malaysia’s upstream industry. The country’s ecosystem also proved its resiliency with the successful design and fabrication of facilities completed during the peak of the pandemic.

Mubadala Petroleum has been present in Malaysia since 2010 and is the operator of Block SK 320 with a 55 percent interest. PETRONAS Carigali Sdn Bhd, a subsidiary of PETRONAS holds 25 percent, with Sarawak Shell Berhad holding the remaining 20 percent interest.

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