PETRONAS has announced that its Pegaga field entered into its natural gas production phase.

The field is located in Block SK320, off the coast of Sarawak in Malaysia and its production will feed into the PETRONAS LNG Complex in Bintulu

The production facilities in the field are designed to produce 550 million standard cubic feet per day (MMscfd) of gas evacuated through a new subsea pipeline connected to an existing offshore gas pipeline network.

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 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,” Asnan added.

Block SK320 is operated by Mubadala Development Company Oil and Gas Limited (Mubadala Petroleum) has 55% participating interest, while PETRONAS Carigali Sdn Bhd holds 25% and Sarawak Shell Berhad has the remaining 20%.