Dialog Secures US$235 Mln Investment Approval For Baram Junior Cluster PSC

KUALA LUMPUR, Jan 9 (Bernama) -- Dialog Group Bhd has announced that the field development and abandonment plan (FDAP) for the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC) has achieved a final investment decision of US$235 million (US$1=RM4.50).

The BJC SFA PSC was signed between Petroliam Nasional Bhd (Petronas), Dialog Resources Sdn Bhd, and Petroleum Sarawak Exploration and Production (PSEP) on Jan 17, 2023. The plan has been approved by Petronas on Jan 8, 2025.

In a filing with Bursa Malaysia today, Dialog Group said the participation in BJC SFA 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.

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The 14-year contract comes with a two-year pre-development phase (including feasibility studies) that allows Dialog Resources and PSEP to finalise the field development plan and move into a two-year development phase, with the first commercial production expected by the end of the phase.

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

“Dialog will remain focused and steadfast in the pursuit of diversification across the energy sector to strategically position the group to weather different economic and oil price cycles, which is in line with the group’s strategy of generating long-term recurring income,” it said.

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Dialog Group expects to fund the BJC SFA PSC with internally generated funds and/or external borrowings.

The BJC SFA PSC is not expected to have any material effects on the earnings, net assets and gearing of Dialog Group for the financial year ending June 30, 2025, but it is expected to contribute positively to the future earnings of the group, it added.

-- BERNAMA