Dialog Group Berhad (“DIALOG” or “the Company”) is pleased to announce that the following wholly owned subsidiaries have today, 5 April 2018, entered into the following documents:-
(1) Dialog Pengerang Sdn Bhd (“DPgSB”) signed a Memorandum of Understanding with the State Government of Johor Darul Ta’zim and the State Secretary, Johor (Incorporated) (“MOU”) to outline the understanding between the said parties for Pengerang CTF Sdn Bhd (“PCTF”), which is currently an indirect wholly owned subsidiary of DIALOG, to develop common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (“Jetty 3”) to support and promote the petroleum and petrochemical storage and handling tank terminal business to be constructed and carried out as Pengerang Deepwater Terminals Phase 3.
(2) Dialog E & C Sdn Bhd (“DECSB”) awarded a Letter of Award to Penta-Ocean (Malaysia) Sdn Bhd (“Penta-Ocean”] for the engineering, procurement and construction works for the reclamation, soil improvement and shore protection works (“LOA”). The land reclamation of approximately 300 acres requires 22 months to complete.
DIALOG will move forward with the development of Pengerang Deepwater Terminals Phase 3 in Pengerang, Johor, southeastern Peninsular Malaysia after having successfully developed Phase 1. Phase 2 is partially completed and operational, and full completion is scheduled in early 2019.
Phase 3 will be developed on the land located next to Phase 2 within Pengerang Deepwater Terminals of approximately 300 acres comprising of 3 main components:
(i) common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (“Jetty 3”) to be undertaken by Pengerang CTF Sdn Bhd (“PCTF”);
(ii) development of more petroleum and petrochemicals storage terminals for medium to long term customers. These storage terminals will be integrated and supported by PCTF’s owned common tankage facilities (including shared infrastructure) and deepwater marine facilities (“Jetty 3”); and
(iii) development of industrial land for further downstream oil and gas related activities.
The indicative initial cost of investment in Pengerang Deepwater Terminals Phase 3 is approximately RM2.5 billion.
The storage terminals on Phase 3 will be dedicated to multiple users comprising potentially oil traders, multinational oil companies, refinery and petrochemicals plants to facilitate oil trading activities as well as to support various downstream operations including those of refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex (“PIPC”) and in Asia Pacific region.
Pengerang CTF Sdn Bhd (“PCTF”), currently a wholly owned company of Dialog Terminals Sdn Bhd (“DTSB”) (formerly known as Centralised Terminals Sdn Bhd) which is in turn wholly owned by DIALOG, will be structured whereby DTSB will hold 80% equity interests in PCTF and Permodalan Darul Ta’zim Sdn Bhd, a wholly owned company of the State Secretary, Johor (Incorporated) (“SSI”) to hold up to 20%.
Pengerang Deepwater Terminals has the potential to be the downstream oil and gas hub in the region and its development synergises with DIALOG’s investments in tankage facilities in Kertih, Terengganu, eastern Peninsular Malaysia and Tanjung Langsat, Johor, southern Peninsular Malaysia.
Phase 3 project is in line with DIALOG’s strategy to continue increasing long term recurring income to DIALOG. The development of Phase 3 will also provide more opportunities for services to be provided by the group’s engineering, construction, fabrication and plant maintenance divisions.
This announcement is dated 5 April 2018 and a copy of the press release is attached herewith.
