KUALA LUMPUR (Nov 11): Dialog Group Bhd (KL:DIALOG) said it is investing an additional US$211 million (RM860 million) to develop a second gas field offshore Miri, Sarawak, after achieving commercial production at its first field.

The first development, the Salbiah Gas Field, achieved first gas on Oct 27, and the second, the Fatimah Gas Field, has reached final investment decision, according to Dialog's bourse filing on Wednesday.

“The commencement of gas production from the Salbiah Gas Field represents a significant milestone for Dialog’s upstream business and further strengthens its production base.

“Building on this achievement, and appraisal well results confirming the commercial viability, the Fatimah Gas Field will now be developed in accordance with the approved development plan and the term of the Baram Junior Cluster Small Field Asset Production Sharing Contract (SFA PSC),” it said.

Dialog intends to fund the additional development with internally generated funds and/or external borrowings.

“The proportion of the source of funds will be determined later after taking into consideration, among others, the internal cash requirements, gearing level of Dialog, interest rate and market conditions,” the group said.

Both gas fields are under the Baram Junior Cluster SFA PSC, inked between Petroliam Nasional Bhd (PETRONAS), Dialog Resources Sdn Bhd and Sarawak Exploration and Production Sdn Bhd.

The PSC was inked in January 2023, while the Field Development and Abandonment Plan was approved in January 2025.

Dialog’s participation in the Baram Junior Cluster SFA PSC is for 14 years, it noted, subject to the PSC’s terms.

Shares of Dialog ended one sen or 0.53% higher at RM1.91, valuing the group at RM10.73 billion.