Dialog Group Berhad announced the signing of the Raja Cluster Small Field Asset Production Sharing Contract between Petroliam Nasional Berhad through Malaysia Petroleum Management, and Dialog Resources Sdn Bhd, a wholly owned subsidiary where Dialog Resources will assume 100% participating interest and the role of operator for the RAJA Cluster SFA PSC.
The 14-year contract comes with a 2-year pre-development phase that allows the company 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.
Dialog said the Raja Cluster SFA PSC includes minimum work commitment during the pre-development phase which will encompass a technical feasibility study, 3D seismic data reprocessing, and specialised studies. A field development and abandonment plan will be developed to determine the feasibility and commerciality of the asset and submitted to PETRONAS for approval. DIALOG will issue a subsequent announcement once the field development and abandonment plan has achieved Final Investment Decision ("FID") and received approval from PETRONAS.
The group believes the increased upstream activities will provide further opportunities to participate in the provision of services in the value chain of the field development cycle. It will also lead to an increase in sources of sustainable and recurring income in the future.
