Dialog Group Bhd has commenced commercial gas production from the Salbiah Gas Field under the Baram Junior Cluster production sharing contract (PSC) offshore Sarawak, while approving an additional US$211 million investment to develop the nearby Fatimah Gas Field.
The group also announced that it had reached a final investment decision (FID) for the Fatimah Gas Field, its second development under the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC). The decision follows successful appraisal well results confirming the commercial viability of the Fatimah field.
Dialog said development of Fatimah would proceed in accordance with the approved development plan and the terms of the production sharing contract. The Baram Junior Cluster PSC was signed on Jan 17, 2023, between Petroliam Nasional Bhd (Petronas), Dialog’s subsidiary Dialog Resources Sdn Bhd and Petroleum Sarawak Exploration and Production Sdn Bhd (PSEP).
Following approval of the Field Development and Abandonment Plan (FDAP) on Jan 8, 2025, development activities at the Salbiah Gas Field were undertaken and successfully completed. The commencement of commercial gas production on Oct 27 represents a key achievement for Dialog’s upstream division, adding to its production activities and strengthening its presence in the energy exploration and production segment.
Dialog said the milestone would further enhance its upstream production base as the group continues expanding its operations across the energy value chain. Building on Salbiah’s successful commissioning, Dialog has approved the development of the Fatimah Gas Field, involving an additional investment of US$211 million. The company said appraisal results had established the field’s commercial viability, paving the way for development under the existing PSC framework. Dialog expects to finance the additional investment through a combination of internally generated funds and external borrowings.
Source: businesstoday.com.my