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Abu Dhabi’s Mubadala finalises investment in Malaysia gas field

Abu Dhabi’s Mubadala finalises investment in Malaysia gas field

Mubadala and its partner have agreed to invest in excess of $1bn in the block

Abu Dhabi’s Mubadala Petroleum has finalised investment in its first Malaysian gas project alongside Petronas Carigali and Sarawak Shell Berhad.

The company said the three had agreed to invest in excess of $1bn in Block SK 320 of the offshore Pegaga gas field development, which is expected to produce its first gas in 2021.

Read: Abu Dhabi’s Mubadala Petroleum Says Makes Malaysian Gas Discovery

Mubadala owns a 55 per cent interest in the block compared to Petronas Carigali’s 25 per cent and Sarawak Shell’s 20 per cent.

The Abu Dhabi firm swapped a 20 per cent stake in the block for 20 per cent of Sarawak Shell’s Block 2B in 2014.

Read: Shell And UAE’s Mubadala Swap Malaysian Offshore Field Stakes

“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,” said Mubadala Petroleum CEO Bakheet Al Katheeri.

“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.”

The Pegaga field is located in the Central Luconia province, offshore of Sarawak at a depth of about 108m.

The project comprises an integrated central processing platform designed to produce 5550 million standard cubic feet of gas per dau plus condensate.

This will be moved through a subsea pipeline to an existing offshore network and then onshore to the Malaysia LNG plant in Bintulu.

The engineering, construction, installation and commissioning contract for the Pegaga gas development has been awarded to Sapura Energy Berhad subsidiarySapura Fabrication Sdn Bhd.

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