Dialog to invest US$211 million in Fatimah gas field off Sarawak
The investment follows first gas at the Salbiah field on Oct 27, while Fatimah has reached a final investment decision.
Development of the Fatimah Gas Field offshore Miri, Sarawak, will involve an additional investment of US$211 million (RM860 million), Dialog Group Bhd said. The project follows the start of commercial production at its first field, Salbiah.
In a bourse filing, Dialog said Fatimah had reached a final investment decision after appraisal well results confirmed its commercial viability. Salbiah recorded first gas on Oct 27.
Dialog plans to use cash generated internally, external borrowings or a combination of both to finance the development. It will decide the funding mix later, considering its cash needs and gearing alongside interest rates and market conditions.
The fields fall under the Baram Junior Cluster Small Field Asset Production Sharing Contract (SFA PSC). The contract was signed in January 2023 by Petroliam Nasional Bhd (PETRONAS), Dialog Resources Sdn Bhd and Sarawak Exploration and Production Sdn Bhd.
Approval for the Field Development and Abandonment Plan came in January 2025. Dialog said Fatimah would be developed under the approved plan and the PSC’s terms. Its participation in the PSC runs for 14 years, subject to those terms.
