Pegaga

Pegaga Gas Field Profile

Location

The Pegaga gas field is located within Block SK320, offshore Sarawak, Malaysia, in the Central Luconia province. It is situated at a water depth of approximately 108 meters (354 feet).

Ownership and Operator

The field is operated by Mubadala Petroleum, which holds a 55% participating interest. The other stakeholders are Petronas Carigali with a 25% interest and Sarawak Shell Berhad with a 20% interest.

Discovery and Appraisal

The Pegaga gas field was discovered in 2013 through the drilling of the Pegaga-1 well, which was drilled to a depth of 2,029 meters and encountered a gas column of 247 meters. The field was further appraised by the Pegaga-2 appraisal well, drilled to a total depth of 2,685 meters, which encountered a gas column of 850 meters. The testing of the gas-bearing zones generated flow rates between 30 and 50 million cubic feet per day (MMcfd) of good quality gas along with condensate.

Development

Regulatory approval for the development of the Pegaga gas field was received in April 2016. The Final Investment Decision (FID) was made in March 2018. The development involved an estimated investment of $1 billion.

Infrastructure and Production

• Integrated Central Processing Platform (ICPP): The field was developed using an 11,000-tonne integrated central gas processing platform (CPP) consisting of 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.
• Subsea Pipeline: The produced hydrocarbons are transported through a new 4km long, 38-inch subsea pipeline tied to an existing offshore gas network, and then fed into the onshore Petronas LNG complex in Bintulu.
• Production Start: First gas production from the field began in March 2022.

Contractors Involved

• Front-End Engineering and Design (FEED): Awarded to Aker Solutions in July 2016.
• Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC): Awarded to Sapura Fabrication, a subsidiary of Sapura Energy, in 2018. The contract was valued at approximately $511 million.
• Flare Ignition Package: Supplied by Tai Crest Resources in 2019.

Reserves and Production

• Gas Reserves: The field has remaining recoverable gas reserves of approximately 87,559 million cubic meters as of 2023.
• Condensate Reserves: Remaining recoverable reserves of crude oil and condensate are about 36.76 million barrels as of 2023.
• Production Rate: The field currently produces hydrocarbons at a rate that accounts for approximately 6% of Malaysia's daily output. Peak production was achieved in 2023, and based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2065.

Project Timeline

• 2010: Mubadala Petroleum entered Malaysia by signing a production sharing contract for Block SK320 with Petronas Carigali.
• 2012: Successful appraisal of the M5 discovery within Block SK320.
• 2013-2014: Exploration drilling campaign leading to the discovery of Pegaga, Sirih, and Sintok gas fields.
• June 2014: Confirmation of the commercial potential of the Pegaga discovery.
• April 2016: Regulatory approval for the development of the Pegaga gas field.
• March 2018: Final Investment Decision (FID) for the Pegaga gas field development.
• June 2020: Start of the development drilling program.
• August 2021: Completion of the development drilling program and installation of the ICPP.
• March 2022: First gas production from the field.

Future Role

The Pegaga field is expected to act as a central hub for future discoveries in Block SK320, facilitating the development of other fields within the block.