Mubadala Energy, the oil and gas unit of Abu Dhabi’s Mubadala Investment Company, has announced a new gas discovery off Malaysia as it seeks to expand its position in energy transition.
The company discovered a "significant gas column of more than 110 metres" at the Cengkih-1 exploration well at Block SK320, off the coast of Sarawak province, a statement said on Tuesday.
Mubadala Energy, which was previously known as Mubadala Petroleum, has a 55 per cent stake in Block SK320 with the remaining 45 per cent held by Malaysia’s Petronas Carigali and Sarawak Shell.
“This discovery further cements our position in Malaysia as a reliable and trusted operator with deep technical capabilities,” said Mansoor Al Hamed, chief executive of Mubadala Energy.
“Gas demand in South-east 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.”
Demand for gas has surged in recent years, as top energy-consuming nations focus on cutting emissions to limit global warming and protect the environment.
Global trade in LNG rose 6 per cent to 380 million tonnes in 2021, Shell said in a report in February. China, the world's second-largest economy, and South Korea led the growth in LNG demand last year.
Mubadala Energy has made six gas discoveries since entering Malaysia in 2010.
The latest find at the Cengkih-1 exploration well comes after the successful production of commercial gas at the Pegaga field within the same block.
Pegaga recorded the discovery of 1 trillion cubic feet of additional gas, after post-drill results confirmed the existence of a "larger and better quality reservoir", the company said.
Mubadala Energy has assets and operations spanning 11 countries, primarily in the Mena region, Russia and South-east Asia. It reached the production milestone of 500,000 barrels of oil equivalent a day for the first time in June, a 22 per cent increase in production from 2021.
The company is continuing to expand its operations. Last year, it bought a 22 per cent stake in the Eastern Mediterranean's Tamar field from Israel's Delek Drilling, which was renamed NewMed Energy. The deal was valued at more than $1 billion.