PETALING JAYA: Dialog Group Bhd

has secured final investment decision approval from Petroliam Nasional Bhd (PETRONAS) for the development and abandonment of the RAJA Cluster Small Field Asset, involving an investment of US$81mil (RM330mil).

The group said PETRONAS approved the field development and abandonment plan on Sept 21. Dialog Resources Sdn Bhd, a wholly-owned subsidiary of Dialog, had entered into the RAJA Cluster Small Field Asset production sharing contract with PETRONAS on Dec 5, 2024.

The 14-year contract comprises a two-year pre-development phase, including feasibility studies, followed by a two-year development phase. First commercial production is expected by the end of the development phase, with production to continue for the remaining 10 years or until the expiry of the contract, whichever is earlier.

Dialog expects to fund the project through internally generated funds and/or external borrowings.