Dialog Group Initiates Gas Production at Salbiah Field, Plans $211 Million for Fatimah Field Development

KUALA LUMPUR: Dialog Group Bhd has officially commenced commercial gas production from the Salbiah field as of October 27, 2026. The company has also announced a final investment decision (FID) to invest an additional US$211 million in the nearby Fatimah gas field.

Both fields are part of the Baram Junior Cluster Small Field Asset Production Sharing Contract (BJC SFA PSC), which was signed on January 17, 2023, between Dialog Resources Sdn. Bhd., Petroleum Sarawak Exploration and Production Sdn. Bhd. (PSEP), and Petroliam Nasional Bhd (PETRONAS). The contract allows for a 14-year operational period, with Dialog holding a 70% interest in the project.

According to a filing with Bursa Malaysia, the investment in the Fatimah field follows the successful completion of development activities at the Salbiah field, which received approval for its Field Development and Abandonment Plan (FDAP) on January 8, 2025. The appraisal well results have confirmed the commercial viability of the Fatimah field, prompting Dialog to move forward with its development plans.

“Dialog Group Bhd stated that it is committed to diversifying its business within the energy sector, positioning the group strategically to navigate various economic cycles and oil price fluctuations.”Dialog Group Bhd

Dialog has indicated that the funding for the Fatimah field development will be sourced from internally generated funds and/or external borrowings, with specific proportions to be determined based on internal cash requirements and market conditions. While the development is not expected to materially impact Dialog's earnings or net assets for the financial year ending June 30, 2027, it is anticipated to contribute positively to future earnings.

Dialog Group Bhd stated that it is committed to diversifying its business within the energy sector, positioning the group strategically to navigate various economic cycles and oil price fluctuations.