KUALA LUMPUR: Dialog Group Bhd
has made a final investment decision (FID) to develop the Fatimah gas field under the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC), involving an additional investment of US$211mil.
In a filing with Bursa Malaysia, Dialog said the decision followed the commencement of commercial production at the Salbiah gas field on Oct 27, 2026.
Both fields are part of the BJC SFA PSC signed between Petroliam Nasional Bhd (PETRONAS), Dialog Resources Sdn Bhd and Petroleum Sarawak Exploration and Production Sdn Bhd on Jan 17, 2023.
Dialog said development activities at the Salbiah gas field were completed following the approval of the Field Development and Abandonment Plan (FDAP) on Jan 8, 2025.
It said the Fatimah gas field would be developed in accordance with the approved development plan following appraisal well results confirming its commercial viability.
Dialog expects to fund the additional development through internally generated funds and/or external borrowings.
It added that 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.
Dialog said the Fatimah gas field development was not expected to have a material impact on its earnings, net assets and gearing for the financial year ending June 30, 2027 (FY27), but was expected to contribute positively to future earnings.
Meanwhile, commercial production from the Salbiah gas field is expected to contribute positively to the group's earnings in FY27.
Dialog's participation in the BJC SFA PSC is for a period of up to 14 years, subject to the contract's terms.
