KUALA LUMPUR: Dialog Group Bhd
has inked a contract with Petroliam Nasional Bhd (PETRONAS) to assume 100% participating interest and the role of operator in the RAJA Cluster small field asset (SFA) production sharing contract (PSC).
The group said its wholly-owned subsidiary Dialog Resources Sdn Bhd entered into the agreement with Malaysia Petroleum Management (MPM) that would include the pre-development study, development and production of discovered resources over the full life of the RAJA Cluster SFA PSC followed by abandonment upon its expiry.
It said the 14-year contract, which commenced on Dec 2, 2024, comes with a two-year pre-development phase 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.
"The participation in RAJA Cluster 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," it said.
