Mubadala Energy company, has confirmed new gas reserves offshore Malaysia where the Abu Dhabi company is working with Petronas.
Preliminary analysis from the the Cengkih-1 exploration well in Block SK320 shows a significant gas column of more than 110 metres within the pinnacle carbonate reef reservoir.
Mansoor Mohamed Al Hamed, CEO Mubadala Energy, commented in a 22 September press release: “This discovery further cements our position in Malaysia as a reliable and trusted operator with deep technical capabilities. Gas demand in Southeast Asia continues to grow and we look forward to helping meet those energy needs, in line with our strategy to play an active role in the energy transition.”
The Cengkih-1 exploration well is located nearby the Pegaga field, one of the fields under within the SK320 Block, which recently marked the successful production of commercial gas. The Pegaga field recorded the discovery of 1 Trillion Cubic Feet of additional gas initial in place, following the post-drill results which confirmed a larger and better quality reservoir.
Building on Mubadala Energy’s strong position in Malaysia, these results also bolster the company’s strategy to expand its position in natural gas as a key bridge fuel in the energy transition.
Mubadala Energy is the Operator of Block SK320, with 55% per cent participating interest in the Production Sharing Contract. The remaining 45% is held by PETRONAS Carigali Sdn Bhd and Sarawak Shell Berhad. Since entering Malaysia in 2010, Mubadala Energy has made 6 gas discoveries displaying a success ratio of 75%, a significantly higher number than the industry average.
PETRONAS Senior Vice President of Malaysia Petroleum Management, Mohamed Firouz Asnan said, “We are thrilled by this latest discovery in Cengkih-1, building on the string of exploration successes in the Central Luconia region.
“The discovery confirms the large potential of this proven carbonate play type in Central Luconia,” he continued. “The monetisation of this discovery can be expedited with a lower cost given the proximity to the many existing facilities, including that of Pegaga which started production in March this year.”
“This latest success was enabled by the close partnership between PETRONAS and its petroleum arrangement contractors in expanding the resource base to meet the rising demand for gas in Sarawak, including the PETRONAS LNG complex in Bintulu,” he added.
PETRONAS, through MPM, manages petroleum arrangements in Malaysia and provides stewardship on upstream petroleum activities.