KUALA LUMPUR: DIALOG has commenced commercial gas production at the Salbiah Gas Field in Sarawak and made a final investment decision (FID) to develop the Fatimah Gas Field, involving an additional investment of US$211 million (RM859.51 million).
The group said the Salbiah field achieved first commercial production on Oct 27, following the completion of development activities under the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC).
The commencement of production is expected to contribute positively to DIALOG’s earnings for the financial year ending June 30, 2027.
Following appraisal results confirming the commercial viability of the Fatimah Gas Field, DIALOG will proceed with its development in accordance with the approved plan and the terms of the production sharing contract.
The group expects to finance the US$211 million investment through internally generated funds and/or external borrowings. The funding mix will be determined after taking into account its cash requirements, gearing, interest rates and market conditions.
DIALOG said the Fatimah development is not expected to have a material impact on its earnings, net assets or gearing for FY2027, but should contribute positively to future earnings.
Its participation in the BJC SFA PSC, which runs for up to 14 years, forms part of its strategy to expand its upstream business and diversify across the energy sector, supporting longer-term recurring income.