Mubadala Petroleum’s total production reached 500,000 barrels of oil equivalent a day (boed) as the Abu Dhabi-based company continues to expand its operations on the back of new strategic investments.
This is the first time that the company has reached the production milestone, an increase of 22 per cent from 2021 levels, Mubadala Petroleum said on Wednesday.
“The strategy to grow our gas-weighted portfolio in key markets where we can add significant value and build long-lasting partnerships, is paying off,” said Mansoor Al Hamed, chief executive of Mubadala Petroleum.
“And as a vital bridge fuel in the energy transition, I am particularly pleased to see our gas assets making a major contribution to this production achievement.”
Mubadala Petroleum, a unit of Abu Dhabi’s strategic investment arm Mubadala Investment Company, has a gas-weighted portfolio with assets and operations spanning 11 countries, primarily in the Mena region, Russia and South-East Asia.
The company has continued to expand its operations over the past 12 months. It bought a 22 per cent stake in the Eastern Mediterranean's Tamar field from Israel's Delek Drilling, which was renamed NewMed Energy last year. The deal was valued at more than $1 billion.
Mubadala Petroleum also operates Pegaga field in Malaysia, which has achieved gas production of 500 million standard cubic feet (MMscf) and 16,000 barrels of condensate per day as of May this year, after a successful production run in March.
Mubadala Petroleum took the Pegaga project from discovery to development and into production with the support of Malaysia’s Petronas and other contractors after a successful exploration drilling campaign from 2013 to 2014, as well as its final investment decision in March 2018, the company said.
“Not only have both projects made a significant contribution to overall production, but they also complement Mubadala Petroleum’s gas-biased strategy in line with its energy transition goals. This focus has seen the company reach nearly 70 per cent gas in the overall portfolio,” Mubadala Petroleum said.
Initiatives such as digital transformation, a continued focus on health, safety, security and environment, and operational efficiency also contributed to the production increase, the company said.
Last year, Mubadala Petroleum also signed an agreement with Italian energy company Eni to identify opportunities in the energy transition.
As part of the agreement, both sides are exploring opportunities in the areas of hydrogen, carbon capture use and storage in the Mena region, South-East Asia, Europe and other regions.