Dialog Group Berhad has been awarded a production sharing contract (PSC) for the Mutiara Cluster Small Field Asset, located offshore Sabah, by Petroliam Nasional Berhad (Petronas). This 14-year agreement, signed on 13 June, names Dialog’s wholly-owned subsidiary, Dialog Resources Sdn Bhd, as the sole operator with full ownership and a 100% participating interest.
The Mutiara Cluster comprises five fields: Nymphe, Nymphe North, Kuda Terbang, Benrinnes, and Mutiara Hitam. According to Petronas, this marks the first PSC awarded under the Malaysia Bid Round 2025 (MBR 2025) via Malaysia Petroleum Management (MPM), with first production anticipated in 2029.
Petronas stated the Mutiara Cluster PSC is designed to act as a catalyst for unlocking the broader potential of the Sandakan Basin and aims to increase local industry participation, aligning with Malaysia’s goal of strengthening its status as a competitive upstream investment hub.
Dialog disclosed in a filing with Bursa Malaysia that the contract includes a two-year pre-development phase, during which a comprehensive field development plan will be finalised. This will be followed by a two-year development period, targeting commercial production by the end of that phase. The remaining 10 years of the contract will be dedicated to production, subject to the earlier of either full term completion or cessation of output.
Participation in this small field asset PSC is aligned with Dialog’s long-term strategy to expand and diversify its presence across the energy sector. The company highlighted that this move enhances its ability to create synergies across its integrated operations, contributing to long-term, sustainable revenue from oil and gas production.
“This development reinforces Dialog’s standing as a leading integrated technical service provider,” the group said. It added that further announcements would follow upon reaching the final investment decision (FID) and obtaining Petronas’ approval.
While Dialog is primarily known for its oil and gas tank storage leasing business, the group also holds upstream assets, including a cluster of mature offshore fields in Sarawak and onshore production operations in Thailand.
On the day of the announcement, Dialog’s shares rose six sen or 3.97%, closing at RM1.57, bringing its market capitalisation to RM8.49 billion.
-The Edge Malaysia
