News

Dialog-Petros to develop Baram Junior Cluster Small Field Asset

DIALOG Group Bhd yesterday signed the Baram Junior Cluster Small Field Asset production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas) and a unit of Sarawak state-owned Petroleum Sarawak Bhd (Petros).

Dialog’s wholly owned unit, Dialog Resources Sdn Bhd, will take up a 70% participating interest in the PSC, including the operatorship of the contract, while Petros’ wholly owned subsidiary, Petroleum Sarawak Exploration and Production, will take up the remaining 30% stake.

It told Bursa Malaysia yesterday that the PSC will span 14 years, including a two-year pre-development phase and two-year development phase.

The production phase will continue for the remaining 10 years or up to the expiry of the contract, whichever is earlier.

Dialog said the PSC also includes feasibility studies during the pre-development phase, which scope will encompass 3D seismic data reprocessing, specialised studies and resource assessment.

“Based on the outcome of the studies, a field development and abandonment plan will be developed to determine the feasibility and commerciality of the asset,” it said.

Dialog said it will make subsequent announcements once a field development and abandonment plan has achieved a final investment decision.

The group said its participation in the PSC is in line with its strategy to continue to expand and diversify across the upstream, midstream, downstream and renewable businesses of the energy sector, thereby increasing opportunities for synergies within the group.

Dialog counter closed five sen or 2% higher at RM2.58 yesterday, translating to a market capitalisation of RM14.57 billion. — TMR / pic source: Dialog’s Facebook

Zukri

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