Baram Junior Cluster Small Field Asset Production Sharing Contract ("BJC SFA PSC")
Reference is made to our announcement dated 17 January 2023 in relation to Baram Junior Cluster Small Field Asset Production Sharing Contract (“BJC SFA PSC”). Unless otherwise defined herein, all terms and acronyms used herein shall be the same as those defined in the previous announcement.
- INTRODUCTION
Pursuant to the signing of Baram Junior Cluster Small Field Asset Production Sharing Contract (“BJC SFA PSC”) between Petroliam Nasional Berhad (“PETRONAS”), Dialog Resources Sdn Bhd (“Dialog Resources”) and Petroleum Sarawak Exploration and Production (“PSEP”) on 17 January 2023, Dialog Group Berhad (“DIALOG”) is pleased to announce that the field development and abandonment plan (“FDAP”) has achieved final investment decision amounting to USD235 million and has been approved by PETRONAS on 8 January 2025.
The 14-year contract comes with a 2-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, specialized 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.
The participation in BJC SFA PSC is in line with DIALOG’s 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 DIALOG Group. 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.
- THE BJC SFA PSC DURATION
DIALOG’s participation in the BJC SFA PSC is for a duration of up to 14 years and the development project to be executed to achieve first gas within 2 years.
- SOURCE OF FUNDS
DIALOG expects to fund the BJC SFA PSC with internally generated funds and/or external borrowings. The proportions of the source of funds will be determined later after taking into consideration, among others, the internal cash requirements, gearing level of DIALOG, interest rate and market conditions.
- FINANCIAL EFFECTS
The BJC SFA PSC 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 DIALOG for the financial year ending 30 June 2025. However, it is expected to contribute positively to the future earnings of DIALOG group.
This announcement is dated 9 January 2025.
