Mubadala Petroleum has awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract to Sapura Energy’s subsidiary Sapura Fabrication for the Pegaga gas field development in Block SK320, offshore Sarawak, Malaysia.

The contract award comes after Mubadala and its partners Petronas Carigali and Sarawak Shell reached the final investment decision (FID) for the field development, which entails an investment of more than $1bn.

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The field is located in the Central Luconia province and at a water depth of about 108m.

Sapura Energy president and group CEO Tan Sri Dato’ Seri Shahril Shamsuddin said: “This is our sixth contract win since the beginning of the year.

“It’s a good start for us. We are proud to be working with a highly respected company such as Mubadala Petroleum and supporting its first development in Malaysia.”

Prior to the contract, the company secured contracts from Petronas Carigali, Hess Exploration and Production Malaysia, Malaysia Marine and Heavy Engineering, and Mumbai Port Trust earlier this year.

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“The facility is expected to have a gas throughput of 550 million standard cubic feet of gas per day, plus condensate.”

The scope of the contract includes work for an offshore integrated central gas processing platform (ICPP) facility comprising an eight-legged jacket.

The facility is expected to have a gas throughput of 550 million standard cubic feet of gas per day, plus condensate.

According to Mubadala, the output will be sent through a new 38in subsea pipeline tying into an existing offshore network and thereafter to the onshore Malaysia LNG plant in Bintulu.

Having completed the FID, the Pegaga project will now move ahead to the construction and installation stage.

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

Mubadala operates Block SK 320 with a 55% interest.