Dialog Secures Development Approval From Petronas For Raja Cluster Small Field Asset

KUALA LUMPUR, Sept 21 (Bernama) -- Dialog Group Bhd today has reached a final investment decision (FID) amounting to US$81 million and secured approval for the field development and abandonment plan (FDAP) for the RAJA Cluster Small Field Asset from Petroliam Nasional Bhd (Petronas).

The decision was in pursuant to the signing of RAJA Cluster Small Field Asset Production sharing contract between Petronas, via Malaysia Petroleum Management (MPM), and Dialog Resources Sdn Bhd on Dec 5, 2024.

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

“The production phase will continue for the remaining 10 years or up to the expiry of the contract, whichever is earlier, while the pre-development phase covered 3D seismic data reprocessing, specialised studies and resource assessments to support development planning,” it said.

The group said the contract sharing is not expected to have any effects on the share capital and substantial shareholders' shareholding of Dialog and is not expected to have any material effects on the earnings, net assets and gearing of the group for the financial year ending June 30, 2027.

“However, it is expected to contribute positively to the future earnings of Dialog,” it added.

-- BERNAMA