Wednesday June 01, 2022

Mubadala Petroleum reaches half a million boed milestone

Mubadala Petroleum reaches  half a million boed milestone

Mubadala Petroleum operated Pegaga field in Malaysia has achieved gas production of 500 million standard cubic feet.

Mubadala Petroleum on Wednesday announced it had reached half a million Barrels of Oil Equivalent a Day (boed) for the first time in its history. This achievement further establishes the company as a strategic player in the international energy sector and marks a 22 per cent increase in production from 2021.

The landmark was reached following a number of significant developments in the last twelve months, including the acquisition of a 22 per cent stake in the Eastern Mediterranean’s Tamar field, offshore Israel from Delek Drilling (now NewMed Energy).

As of May this year, the Mubadala Petroleum operated Pegaga field in Malaysia has achieved gas production of 500 MMscf (Million standard cubic feet) and 16,000 barrels of condensate per day. This is following the company’s announcement of successful gas production at Pegaga in March this year, which is a key producing field supplying gas to the PETRONAS LNG Complex, in Bintulu, in the Malaysia’s state of Sarawak.

Mubadala Petroleum took the project from discovery to development and into production with the support of PETRONAS, our partners, and contractors following a successful exploration drilling campaign in 2013-14 and Final Investment Decision (FID) in March 2018.

Not only have both projects made a significant contribution to overall production, but they also complement Mubadala Petroleum’s gas-biased strategy in line with its energy transition goals. This focus has seen the company reach nearly 70 per cent gas in the overall portfolio.

Mansoor Mohamed Al Hamed, CEO of Mubadala Petroleum, commented, “We are extremely proud to have reached this milestone, which reflects the hard work and deep capabilities of our people. The strategy to grow our gas weighted portfolio in key markets where we can add significant value and build long-lasting partnerships is paying off.

And as a vital bridge fuel in the energy transition, I am particularly pleased to see our gas assets making a major contribution to this production achievement.” The company also cited initiatives in digital transformation and a continued focus on world-class HSSE and operational efficiency, which made an important contribution to production momentum.

Mubadala Petroleum, the Abu Dhabi headquartered international energy company, has successfully commenced first gas production from the Pegaga gas field in Block SK 320, offshore Malaysia in March.

This milestone 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 key producing field supplying gas to PETRONAS LNG Complex, in Bintulu, Sarawak, Malaysia.

Mansoor Mohamed Al Hamed, CEO of Mubadala Petroleum, commented, “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.”

PETRONAS Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan 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 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 COVID-19 pandemic,” he added.

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

The Pegaga gas field is located in the Central Luconia province, offshore Sarawak, Malaysia at about 108-meter water depth. The development concept comprises of an Integrated Central Processing Platform (ICPP) consisting of an 8-legged jacket.

The facility is designed for gas throughput of 550 million standard cubic feet of gas per day plus condensate. The produced gas will be evacuated through a new 4 KM, 38-inch subsea pipeline tying into an existing offshore gas network and subsequently to the onshore PETRONAS LNG Complex in Bintulu.

WAM

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