Abu Dhabi-headquartered Mubadala Energy has made a sizeable shallow-water gas discovery offshore Sarawak, Malaysia, in its prolific Block SK320.

The operator on Tuesday confirmed the discovery, with its Cengkih-1 exploration well hitting a “good quality gas reservoir”.

“Preliminary analysis shows a significant gas column of more than 110 metres within the pinnacle carbonate reef reservoir,” the company said.

The Cengkih-1 exploration well was drilled near the Pegaga field, one of the fields within the SK320 Block, where Mubadala began commercial gas production earlier this year.

Mubadala Energy — which changed its name from Mudadala Petroleum earlier this month— said the new discovery “bolsters the company’s strategy to expand its position in natural gas as a key bridge fuel in the energy transition”.

Mubadala indicated the Pegaga field has recorded an additional 1 trillion cubic feet of gas initially in place following post-drilling results that confirmed a larger and better quality reservoir.

Feedstock to Petronas LNG complex

The Cengkih discovery could also be exploited to supply feedstock to the Petronas LNG Complex at Bintulu, Sarawak, where Pegaga’s gas is already flowing, Upstream understands.

Mubadala Energy chief executive Mansoor Mohamed Al Hamed said the discovery further cements the company’s position in Malaysia and added: “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.”

Mubadala operates the SK320 production sharing contract with a 55 % interest, with Malaysia’s national upstream company Petronas Carigali holding 25% and UK supermajor Shell the remaining 20%.

More than 90% of the resources in Mubadala’s portfolio are already in production, which explains why it might look to expand the potential from blocks in Malaysia, industry experts have claimed.

The operator earlier this year brought on stream the Pegaga field, which was developed via an integrated central processing platform and a wellhead drilling platform, with production flowing through a new subsea pipeline tied into an existing offshore gas pipeline network.

Mubadala envisages an output of 500 million cubic feet per day of gas and 9500 barrels per day of condensate from Pegaga, which is located in water depths of 108 metres on Block SK320.

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