Latest news with #MutiaraClusterSmallFieldAsset
New Straits Times
08-07-2025
- Business
- New Straits Times
Masidi: SMJ Energy will pursue oil and gas sector opportunities
KOTA KINABALU: SMJ Energy (SMJE) does have a defined scope of involvement in the oil and gas sector, said its chairman, Datuk Seri Masidi Manjun. He said, despite the state financial investor not taking part in the bidding of production-sharing contract (PSC) for the Mutiara Cluster Small Field Asset (SFA) with Petroliam Nasional Bhd (Petronas), SMJE could still be part of other stages in the industry. "While Sabah is not ready to bid directly in this round, participation at other stages is still possible. We must understand that bidding for oil exploration and smaller contract work are very different. "Exploration requires billions in capital expenditure. At this point, SMJE and Sabah International Petronas Petroleum (SIP) are not yet qualified to take on such bidding because we lack the technical expertise," he said during a question-and-answer session at the state legislative sitting here. The state finance minister was replying to an additional question by Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) on why SMJ Energy or SIP was involved in the bidding process for the Mutiara Cluster oil block off Sabah's east coast. Shafie said Petronas awarded it Dialog Group Bhd, based in the peninsula, instead of Sabah's own state-linked entities. Masidi clarified that the award process was part of an international bidding exercise for exploration. He said it was not a small-scale operation and required deep technical capacity and significant capital. Masidi acknowledged the sentiment expressed by Shafie but urged for a broader and more realistic perspective, citing Sabah's relatively recent entry into the oil and gas sector compared with Sarawak. "We are often compared with Sarawak, but their oil industry began over a hundred years ago. We are just starting out, we are crawling while they are already running. Insyallah, Sabah will participate more directly in this industry in the future," he said.
New Straits Times
16-06-2025
- Business
- New Straits Times
Dialog-Petronas Mutiara cluster deal to drive long-term growth
KUALA LUMPUR: Dialog Group Bhd's newly awarded production-sharing contract (PSC) for the Mutiara Cluster Small Field Asset (SFA) with Petroliam Nasional Bhd (Petronas) is expected to strengthen the group's upstream portfolio and support its long-term growth trajectory. CIMB Securities said currently, Dialog operates three producing assets, namely the Bayan oilfield service contract, the D35/D21/J4 PSC, and the L53/48 concession in Thailand. It is also progressing with the BJC SFA PSC, following Petronas's final investment decision approval in January, with first production slated for January 1, 2027. "In addition, the group is in the pre-development phase for the RAJA Cluster SFA, awarded in December 2024. If the RAJA and Mutiara clusters prove commercially viable, Dialog's upstream portfolio could grow to six assets, providing stable income over the next decade," it said in a note today. The firm said Dialog's upstream segment currently contributes about 35 per cent to the group's bottom line. While limited details have been disclosed, it estimates capital expenditure for the Mutiara asset to range between US$10 and US$20 per barrel of oil equivalent (boe), depending on reserve size and water depth. This is broadly consistent with other marginal field developments in Malaysia. "With a total capex of US$235 million, this translates to roughly US$9.46 per boe, which is within the expected cost range for similar assets," it added. Although the deal will not deliver immediate earnings, CIMB Securities views the development as a positive strategic move to deepen Dialog's upstream footprint. "We maintain our earnings per share forecasts, 'Buy' call, and target price of RM2.50," it said.
