PETALING JAYA: Dialog Group Bhd
, through its joint venture company Pan Orient Energy (Siam) Ltd (POES), has been awarded the concession rights and operatorship for an onshore oil and gas block in Thailand, with a minimum work commitment of US$14.3mil (RM58.42mil).
The award covers the L8/66 exploration block, which was awarded by the Thai government following the 25th Thailand Onshore Bid Round.
In a filling with Bursa Malaysia, Dialog said POES will hold a 70% participating interest in the concession and serve as its operator, while Canadian-listed CanAsia Energy Corp will hold the remaining 30% interest.
“The concession L8/66 is subject to, among others, the finalisation and execution of the concession agreement,” it said, adding that physical work is expected to begin immediately after the concession agreement is signed.
POES is 50.01%-owned by Dialog’s indirect wholly owned subsidiary Pan Orient Petroleum Pte Ltd, with the remaining 49.99% held by Thailand-based energy and marine services company Sea Oil Energy Ltd.
Dialog currently operates the producing L53/48 onshore concession in Thailand through POES.
It said L8/66 is located adjacent to the L53/48 concession area and was previously part of the same concession before being relinquished to the Thai government under concession terms requiring undeveloped acreage to be surrendered over time.
“Following its award to POES, the block is expected to benefit from its proximity to L53/48 concession area with similar geological characteristics, offering POES access to additional acreage surrounding existing producing fields,” it added.
The group said the award further strengthens its upstream portfolio and creates operational synergies by leveraging its integrated technical services capabilities across its businesses.
Furthermore, Dialog said it would continue to pursue diversification across the upstream, midstream and downstream energy sectors, as well as sustainable and renewable energy, to weather different economic and oil price cycles as part of its strategy to build long-term recurring income.
