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 Malaysia.
The project will now proceed to the construction and installation stage, state news agency WAM reported on Wednesday.
Mubadala Petroleum is the operator of Block SK 320 with 55 percent interest, while Petronas Carigali holds 25 percent and Sarawak Shell Berhad 20 percent.
Mubadala Petroleum and its partners are expected to invest in excess of $1 billion into the development with first gas expected by third quarter of 2021.
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.”
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 metre water depth.
The development comprises an integrated central processing platform which is designed for gas throughput of 550 million standard cubic feet of gas per day plus condensate.
Mubadala Petroleum added that it has issued the letter of award for the engineering, procurement, construction, installation and commissioning contract for the Pegaga gas development to Sapura Fabrication, a wholly owned subsidiary of Sapura Energy Berhad.
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