KUALA LUMPUR: Dialog Group Bhd
has announced that the field development and abandonment plan for the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC) has received a final investment decision of US$235mil.
The plan, which was signed by Petroliam Nasional Bhd (PETRONAS), Dialog Resources Sdn Bhd and Petroleum Sarawak Exploration and Production (PSEP) on Jan 17, 2023, was approved by PETRONAS on Jan 8, 2025.
In a filing with Bursa Malaysia, the 14-year PSC 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 2-year development phase with 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.
“The scope of the feasibility studies had encompassed 3D seismic data reprocessing, specialised studies, and resource assessment. Based on the outcome of the studies, the field development and abandonment plan were developed which determined the feasibility and commerciality of the asset,” it said.
Dialog’s participation in the BJC SFA PSC is for a duration of up to 14 years and the development project is to be executed to achieve first gas within two years.
Dialog plans to fund the BJC SFA PSC through internal funds and/or external borrowings. The exact funding mix will be decided later, considering factors like cash needs, gearing level, interest rates, and market conditions.
The BJC SFA PSC is not expected to affect Dialog's share capital, earnings, or net assets for the financial year ending 30 June 2025, but will contribute positively to future earnings.
