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UPDATE 2-Mubadala advances $1 bln Malaysia Pegaga gas field project

UPDATE 2-Mubadala advances $1 bln Malaysia Pegaga gas field project

Reuters Staff: MARCH 21, 2018

KUALA LUMPUR, March 21 (Reuters) – Mubadala Petroleum, Petronas and Royal Dutch Shell will spend more than $1 billion to develop Malaysia’s Pegaga gas field, aiming to produce gas by the third quarter of 2021, Abu Dhabi-based Mubadala said on Wednesday.

The project in Block SK320, located in the Central Luconia province, offshore the East Malaysian state of Sarawak, will now proceed to the construction and installation stage, the company said in a statement.

The Pegaga gas field would be the first development in Malaysia for Mubadala Petroleum, which is fully owned by Abu Dhabi-based state fund Mubadala Investment Company that holds assets worth over $125 billion.

The company plans to build an Integrated Central Processing Platform (ICPP) consisting of an eight-legged jacket designed for natural gas throughput of 550 million cubic feet per day plus condensate to be located in water depths of about 108 metres (354 feet), Mubadala said.

The output will be sent through a new 38-inch subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu, the company said.

Separately, Sapura Energy Bhd, Malaysia’s largest oil and gas services company, said it won the contract from Mubadala Petroleum to undertake the engineering, procurement, construction, installation and commissioning works for the Pegaga gas field.

Sapura has won contracts worth nearly 3 billion ringgit ($765.11 million) so far this year, including the Pegaga gas field, it said in a statement on Wednesday.

Sapura had already announced contracts worth 905 million ringgit before Wednesday.

$1 = 3.9210 ringgit Reporting by Florence Tan, Emily Chow and A. Ananthalakshmi; Editing by Christian Schmollinger and Richard Pullin

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