Pegaga gas field is located in Central Luconia province, offshore Sarawak, Malaysia within Block SK320. The offshore field is situated at a water depth of 108m.
Mubadala Development Company Oil and Gas Limited (Mubadala Petroleum) operates Block SK320 with 55% participating interest. Petronas Carigali (25%) and Sarawak Shell Berhad (20%) are the other stakeholders.
Mubadala Petroleum received regulatory approval for the development of the Pegaga gas field in April 2016.
In March 2018, the partners reached the Final Investment Decision (FID) for the Pegaga gas field development. Subsequently, the project entered the construction and installation stage. The field was developed with an estimated investment of $1bn.
Mubadala Petroleum announced the first gas production from the field four years later in March 2022.
Block SK320 appraisal campaign
Mubadala Petroleum entered Malaysia in 2010 by signing a production sharing contract for SK320 with Petronas Carigali.
In June 2014, the company confirmed the commercial potentiality of the Pegaga discovery in Block SK320.
The announcement was made following three gas discoveries- Pegaga, Sirih and Sintok, in the block following the 2013/14 exploration drilling campaign.
The block also hosts the M5 discovery, which was successfully appraised in 2012 by the M5-2 appraisal well.
The Sintok-1 well, located around 240km northwest of Bintulu, Sarawak, was drilled to a depth of 2,775m to the target reservoir. It intersected a gas column of 290m.
Situated adjacent to the Sintok discovery, the Sirih-1 well targeted a series of carbonate pinnacles within Block SK320. It was drilled to a depth of 3,000m and encountered a 293m gas column.
Pegaga field was discovered during the drilling of the Pegaga-1 well.
The well, located approximately 250km northwest of Bintulu, was drilled to a depth of 2,029m. It encountered a gas column of 247m.
The field was appraised by spudding the Pegaga-2 appraisal well to a total depth of 2,685m. This well encountered a gas column of 850m.
The testing of the gas-bearing zones of the well generated flow rates between 30 and 50 million cubic feet per day (Mcfd) of good quality gas along with condensate.
Pegaga Field development
Pegaga offshore field development includes an integrated central processing platform (ICPP) featuring an eight-legged jacket and a wellhead drilling platform.
The facility is designed to produce 550 million standard cubic feet per day (MMscfd) of gas and condensate.
The gas produced by the facility will be transported through a new 4km long, 38-inch subsea pipeline tied to an existing offshore gas network.
The hydrocarbons will then be fed into the onshore Petronas LNG complex in Bintulu. With a production capacity of 29.3 million tonnes per annum, the complex is said to be world’s biggest LNG production facility.
The jacket and the wellhead deck, made in Lumut and Kuching fabrication yards, were installed in April 2020 after the completion of the Pegaga Development Drilling campaign. In August 2021, the ICPP float-over and installation was completed.
The project’s development drilling campaign ended in August 2021.
The Malaysian subsidiary of Aker Solutions was awarded the front-end engineering and design (FEED) contract for the Pegaga gas field in July 2016.
Mubadala Petroleum secured an engineering, procurement, construction, installation, and commissioning (EPCIC) contract for the Pegaga gas development to Sapura Energy-subsidiary Sapura Fabrication in 2018.
Mubadala in Southeast Asia
A wholly owned subsidiary of Abu Dhabi-based Mubadala Investment Company, Mubadala Petroleum manages assets and operations across 11 countries located primarily in the Middle East and North Africa (MENA), Russia and Southeast Asia.
Apart from Malaysia, Mubadala is present in Thailand and Indonesia in Southeast Asia.
It operates three concessions within the offshore Gulf of Thailand and four offshore Production Sharing Contracts (PSCs) in Indonesia. It also has a non-operated interest in the Andaman II PSC in Indonesia.