The Pegaga field will be developed using a central processing platform. Credit: Mubadala Petroleum.
Produced gas will be transported to an onshore refinery located in Bintulu. Credit: Mubadala Petroleum.
Sapura Fabrication will build the Pegaga gas field platform. Credit: Sapura Energy.

Pegaga gas field lies in 108m of water in Block SK320 off the shore of Sarawak, Malaysia.

The partners in Block SK320 are Mubadala Petroleum (55%), PETRONAS Carigali (25%) and Sarawak Shell Berhad (20%).

Mubadala Petroleum is currently serving as the operator of the block.

Regulatory approval for the development of the Pegaga gas field was received in April 2016.

Front-end engineering design (FEED) studies were completed in June 2017, while the final investment decision was made in March 2018.

The field is scheduled to be developed with an estimated investment of $1bn.

First gas from the field is currently expected in the third quarter of 2021.

Block SK320 exploration and appraisal details

Block SK320 lies in the Central Luconia province adjacent to Block 2B offshore Malaysia.

The block contains the M5 field, which was initially discovered in 1974 and has been operated by Mubadala since 2010.

“The main gas-bearing zones of the well were production-tested and flowed at rates between 30 and 50 million cubic feet per day (Mcfd) of gas.”

Mubadala conducted a series of 3D seismic surveys on the block in 2010.

Based on the data from the surveys, the M5 discovery was successfully appraised in 2012 by the M5-2 appraisal well, which was drilled to a total depth of 2,060m and successfully delineated the extent of the reservoir.

Additional seismic surveys were carried out in 2012 and an exploration campaign was conducted between 2013 and 2014, which led to the discovery of three gas fields, namely Pegaga, Sirih and Sintok.

The Sintok-1 well was drilled at a total depth of 2,775m and led to the discovery of the Sintok field. The well intersected a gas column of 290m.

The Sirih-1 well was spudded near the Sintok field and ultimately led to the discovery of the Sirih field.

It was drilled to a depth of 3,000m and encountered a 293m gas column.

Pegaga gas field discovery and appraisal

Pegaga field was discovered via the drilling of the Pegaga-1 well.

The well was drilled to a depth of 2,029m, approximately 250km north-west of Bintulu and encountered a gas column of 247m.

The field was appraised with the drilling of the Pegaga-2 appraisal well to a total depth of 2,685m.

Its appraisal well encountered a gas column of 850m.

The main gas-bearing zones of the well were production-tested and flowed at rates between 30 and 50 million cubic feet per day (Mcfd) of gas, along with good quality condensate.

Pegaga gas field development details

The Pegaga gas field will be developed through an integrated central gas processing platform (CPP).

The CPP will consist of an eight-legged jacket and will have a design capacity of 550Mcfd of gas.

Hydrocarbons produced from the site will be transported via a new 38in-diameter subsea pipeline connected to an existing offshore network, before being further transported onshore to the Malaysia LNG plant in Bintulu.

The Pegaga field is expected to act as a central hub for the future discoveries in Block SK320.

Contractors involved

The FEED contract for the Pegaga gas field was awarded in July 2016.

The engineering, procurement, construction, installation and commissioning (EPCIC) contract for the CPP was awarded to Sapura Fabrication, a subsidiary of Sapura Energy (formerly SapuraKencana Petroleum Berhad).

Pegaga field’s EPCIC contract is worth approximately MYR2bn ($511m).

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