Reference is made to our announcement dated 5 December 2024 in relation to RAJA Cluster Small Field Asset Production Sharing Contract (“RAJA Cluster 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 RAJA Cluster Small Field Asset Production Sharing Contract between Petroliam Nasional Berhad (PETRONAS) (“PETRONAS”) through Malaysia Petroleum Management ("MPM"), and Dialog Resources Sdn. Bhd. (“Dialog Resources”) on 5 December 2024 (“RAJA SFA PSC”), DIALOG Group Berhad (“DIALOG”) is pleased to announce that the field development and abandonment plan (“FDAP”) has achieved final investment decision amounting to USD81 million and has been approved by PETRONAS on 21 September 2026.
The 14-year contract comes with a 2-year pre-development phase (including feasibility studies) that allows Dialog Resources to finalise the field development plan and move into a subsequent 2-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.
The pre-development phase covered 3D seismic data reprocessing, specialised studies and resource assessments to support development planning. Based on the study outcomes, DIALOG has determined the asset’s feasibility and commercial viability, and a field development and abandonment plan has been established. The estimated 2P reserves is approximately 6.1 MMSTB.
The development of RAJA SFA PSC is supported by internal capabilities namely Tarpon platform system, which is a cost-effective alternative to traditional wellhead platform. Tarpon platform is suitable for marginal field developments in water depths of less than 100 meters befitting the requirements of RAJA Cluster.
DIALOG currently holds an existing operatorship in the Baram Junior Cluster Small Field Assets Production Sharing Contract; hence, participation in the RAJA SFA PSC is expected to further deepen DIALOG’s operational knowledge and expertise. Furthermore, developing the RAJA Cluster fields creates significant operational synergies, allowing DIALOG to leverage its integrated technical services team across DIALOG Group’s diversified business model.
DIALOG will remain focused and steadfast in the pursuit of diversification across the upstream, midstream and downstream energy sector as well as the sustainable and renewable sector, to strategically position the Group to participate and benefit from different economic and oil price cycles, which is in line with the Group’s strategy of generating long term recurring income.
This strategy is demonstrated by DIALOG’s continued investments across the energy value chain, including the recent commencement of commercial operations of its 150,000 m3 renewable fuel storage facility at DIALOG Terminals Langsat on 1 September 2026, of which 100,000 m3 is dedicated to Ecoceres Limited under a take-or-pay storage agreement.
- THE RAJA SFA PSC DURATION
DIALOG’s participation in the RAJA SFA PSC is for a duration of up to 14 years and the development project to be executed to achieve first oil within 2 years.
- SOURCE OF FUNDS
DIALOG expects to fund the RAJA 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 RAJA 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 2027. However, it is expected to contribute positively to the future earnings of DIALOG group.
This announcement is dated 21 September 2026.
