KUALA LUMPUR (April 2): Dialog Group Bhd (KL:DIALOG) said it will hold a 25% stake in the production sharing contract (PSC) for the Cendramas field, located off Peninsular Malaysia. The PSC commences on Sept 23 for a 20-year period.

The group will hold the stake via its wholly-owned subsidiary, Dialog Resources Sdn Bhd, while UK-based EnQuest Petroleum Production Malaysia Ltd will hold a similar 25% participating interest, according to Dialog's bourse filing on Thursday.

The remaining 50% will be owned by Medco Asia Pacific Ltd, part of Indonesia’s Medco Energi Internasional, which will serve as the operator. Dialog and EnQuest are designated operating partners in the PSC.

The three companies received their letters of award from Petroliam Nasional Bhd (PETRONAS).

The agreement provides the partners with the opportunity to extend the life of the producing field beyond the current PSC period and to unlock further hydrocarbon potential, said Dialog.

The group said its participation in Cendramas strengthens its upstream portfolio and reinforces integration across upstream, midstream, and downstream segments.

The investment, it said, complements existing upstream ventures and operatorship, underscoring the group’s diversification strategy across the energy value chain.

The group added that it remains focused on positioning itself to benefit from varying economic and oil price cycles, in pursuit of long-term recurring income.

Shares in Dialog closed up 14 sen or 6.6% at RM2.25 on Thursday, valuing the group at RM12.7 billion. Over the past one year, the stock has gained 48%.