KUALA LUMPUR (Feb 11): Dialog Group Bhd (KL:DIALOG) said on Wednesday that it has secured a production sharing contract with its partners for the Cendramas field off Peninsular Malaysia.
The production sharing contract is subject to finalisation of the joint operating agreement and other conditions stipulated by Malaysia’s national oil and gas firm PETRONAS, Dialog said in an exchange filing. Indonesia’s Medco Energi Internasional and UK-based EnQuest are the proposed partners.
Medco is an energy and natural resources company while EnQuest is an energy transition company focused on energy security and decarbonisation.
Dialog received the letter of award from PETRONAS on Tuesday (Feb 10), according to a bourse filing on Wednesday.
The company noted that its participation as partner in the Cendramas production sharing contract is an extension of Dialog’s upstream business to further deepen integration and expansion across the upstream, midstream, downstream and renewable businesses of the energy sectors.
It further noted that the award will complement its existing investments and operatorship in the upstream business.
Dialog said it is committed to diversifying across the energy sector to stay resilient through economic and oil price changes, supporting its goal of generating long-term recurring income.
According to the group, the Cendramas production sharing contract is expected to contribute positively to Dialog’s future earnings.
Dialog’s share price was up by 3.14% to RM1.64 a share at Wednesday’s midday break, valuing the company at RM9.25 billion.