PETALING JAYA: Dialog Group Bhd
has secured final investment decision approval from Petroliam Nasional Bhd (PETRONAS) for the development and abandonment of the RAJA Cluster Small Field Asset, involving an investment of US$81mil (RM330mil).
The group said PETRONAS approved the field development and abandonment plan (FDAP) on Sept 21.
Dialog Resources Sdn Bhd, a wholly owned subsidiary of Dialog, had entered into the RAJA Cluster Small Field Asset Production Sharing Contract (RAJA SFA PSC) with PETRONAS on Dec 5, 2024.
The 14-year contract comprises a two-year pre-development phase, including feasibility studies, followed by a two-year development phase. First commercial production is expected by the end of the development phase, with production to continue for the remaining 10 years or until the expiry of the contract, whichever is earlier.
Dialog said the pre-development phase included 3D seismic data reprocessing, specialised studies and resource assessments to support development planning.
Based on the studies, the group determined the asset to be commercially viable and established its FDAP.
The RAJA Cluster has estimated proven and probable reserves of about 6.1 million stock tank barrels.
The development will be supported by Dialog’s in-house Tarpon platform system, which the group said is a cost-effective alternative to traditional wellhead platforms and is suitable for marginal field developments in water depths of less than 100 metres.
Dialog currently operates the Baram Junior Cluster Small Field Assets PSC, and said its participation in the RAJA SFA PSC is expected to further deepen its operational knowledge and expertise.
The group added that development of the RAJA Cluster would create operational synergies, allowing it to leverage its integrated technical services team across its diversified business.
Dialog expects to fund the project through internally generated funds and/or external borrowings, with the funding mix to be determined later based on factors including its cash requirements, gearing, interest rates and market conditions.
The company said the project is not expected to have a material impact on its earnings, net assets or gearing for the financial year ending June 30, 2027, but is expected to contribute positively to future earnings.
Dialog said the project is part of its strategy to diversify across the upstream, midstream and downstream energy sectors, as well as sustainable and renewable energy, with the aim of generating long-term recurring income.
The group noted that its recent investments include the commencement of commercial operations of a 150,000 cubic metre renewable fuel storage facility at Dialog Terminals Langsat on Sept 1, with 100,000 cubic metres dedicated to Ecoceres Ltd under a take-or-pay storage agreement.
