Tuesday, August 16, 2011

Dialog makes foray into O&G devt under Petronas contract

KUALA LUMPUR: DIALOG GROUP BHD [] has made its foray into the development and production of marginal hydrocarbon reserves in Malaysia after its joint venture (JV) secured a contract from Petroliam Nasional Bhd.

Petronas had on Tuesday, Aug 16 awarded a risk service contract (RSC) for the development and production of O&G from the Balai cluster fields off Sarawak to a partnership of Roc Oil Malaysia (Holdings) Sdn Bhd and Dialog D&P Sdn Bhd in a JV with Petronas Carigali Sdn Bhd.

The Balai Cluster RSC is the second contract to be awarded under Petronas' new petroleum arrangement.

Dialog D&P was identified by Roc Oil as their qualified local technical partner to undertake the project. Roc Oil will have a 48% interest, Dialog D&P 32% and Petronas Carigali 20% in the partnership.

Dialog said the pre-development phase is scheduled to commence in 2H 2011 and is expected to take up to 18 months.

Pre-development activities are planned to include geological and geophysical works, the drilling and testing of appraisal wells and the procurement of related facilities and equipment.

'The total cost of the pre-development phase is estimated to be between US$200 to US$250 million,' it said.

Dialog said on the successful completion of the pre-development phase and agreement on the economic viability of the fields, the contractor group will submit a field development plan for all or some of the fields and progress to the development phase.

Production from all the fields in the cluster is planned to be online within 24 months.

Development activities are planned to include the drilling of wells, the installation of platforms, topsides and pipelines, and the tie-in of the new facilities to existing Petronas Carigali infrastructure as appropriate.

'The total cost of the development phase is estimated to be between USD$650 to US$700 million,' it said.

Dialog said its participation in the small field risk service contract would 'propel Dialog's services within the upstream oil and gas arena to a higher level while strengthening Dialog's position in the value chain of the oil, gas and petrochemical industry'.

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