Dialog JV awarded exploration concession in Thailand
The L8/66 block carries a US$14.3 million (RM58.4 million) minimum work commitment, with the award still subject to an agreement and conditions.
Dialog Group Bhd said Pan Orient Energy (Siam) Ltd (POES), its 50.01%-owned joint venture, has secured rights to explore and operate Thailand’s onshore L8/66 block. POES will have a 70% participating interest, with Canada-listed CanAsia Energy Corp taking a 30% non-operating interest.
The concession agreement must still be finalised and executed, and its conditions precedent fulfilled. Physical work is expected to start immediately following the signing.
In a Bursa Malaysia filing, Dialog said the Thai government notified POES of the award on Oct 5. POES and CanAsia had submitted a joint bid in Thailand’s 25th Onshore Bid Round.
POES is jointly owned by Pan Orient Petroleum Pte Ltd, a wholly-owned Dialog subsidiary, and Thailand-based Sea Oil Energy Ltd. Sea Oil holds the other 49.99% of the venture.
Dialog already operates the neighbouring L53/48 producing concession through POES. L8/66 previously belonged to that concession but was returned to the Thai government under terms requiring the gradual surrender of undeveloped acreage.
According to Dialog, L8/66 shares geological characteristics with L53/48 and adds acreage around POES’s producing fields. The company said the award would strengthen its upstream portfolio and allow it to draw on the group’s integrated technical services.
