Reference is made to DIALOG Group Berhad’s (“DIALOG”) announcement made on 16 August 2011.
The Board of Directors of DIALOG wishes to announce that following the difficult business environment and persistent depressed oil price, BC Petroleum Sdn Bhd (“BCP”), DIALOG’s 32% jointly controlled entity, has ceased its operation and has on 3 February 2016 signed a Termination by Mutual Agreement with Petroliam Nasional Berhad (“PETRONAS”) to mutually terminate its Small Field Risk Service Contract (“SFRSC”) with an effective termination date of 1 December 2015.
BCP is 32% owned by DIALOG’s wholly owned subsidiary, Dialog D&P Sdn Bhd (“Dialog D&P”), 48% owned by Roc Oil Malaysia (Holdings) Sdn Bhd (“Roc Oil”) and the balance 20% is held by PETRONAS Carigali Sdn Bhd (“PETRONAS Carigali”).
The SFRSC was signed by DIALOG’s wholly owned subsidiary, Dialog D & P, Roc Oil and PETRONAS Carigali with PETRONAS on 16 August 2011 and subsequently novated to BCP. The SFRSC is for the development and production of petroleum from the Balai Cluster Fields, located offshore Bintulu, Sarawak.
With the termination of the SFRSC, BCP will receive the balance of the capital expenditure reimbursement within the first half of 2016. DIALOG’s total losses amounting to approximately USD10 million had been substantially provided for in the Group’s financial results. As such, the termination is not expected to have any material effect on the earnings, net assets and gearing of DIALOG for the current financial year ending 30 June 2016.
The termination of the SFRSC does not require approvals from the relevant authorities and the shareholders of DIALOG, and has no effect on the share capital and substantial shareholders’ shareholdings of DIALOG.
None of the directors of DIALOG, major shareholders of DIALOG and/or persons connected with them have any interest, whether direct or indirect, in the termination of the SFRSC.
This announcement is made pursuant to Para 9.03 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
This announcement is dated 4 February 2016.
