Pegaga field enters gas production phase

Petroliam Nasional Berhad (Petronas) logo

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KUCHING, March 22: The Pegaga field in Block SK320, off the coast of Sarawak, has commenced first gas production feeding into the Petronas Liquified Natural Gas (LNG) Complex in Bintulu.

Block SK320 is operated by Mubadala Development Company Oil and Gas Limited (Mubadala Petroleum) with a 55 per cent participating interest, while partners Petronas Carigali Sdn Bhd hold 25 per cent and Sarawak Shell Berhad hold the remaining 20 per cent.

The production facilities, which consist of an integrated central processing platform and a wellhead drilling platform, are designed to produce 550 MMscfd of gas evacuated through a new subsea pipeline tied into an existing offshore gas pipeline network.

Petronas senior vice president of Malaysia Petroleum Management, Mohamed Firouz Asnan congratulated 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 project, which undertook its Final Investment Decision at a 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 Covid-19 pandemic,” he said in a media release today.

Beyond the Pegaga field, Petronas is pursuing its Upstream Ambition 2030 to increase Malaysia’s production level to two million boepd from its current level of approximately 1.8 million boepd through the development of various opportunities that are in the pipeline.

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