Dialog venture awarded Thai exploration block with US$14.3 million work commitment
Pan Orient Energy (Siam) Ltd will operate L8/66 with a 70% interest, but the concession agreement still needs to be finalised and signed.
Dialog Group Bhd said its joint venture, Pan Orient Energy (Siam) Ltd (POES), has won rights to explore and operate Thailand’s onshore L8/66 oil and gas block. The award carries a minimum work commitment of US$14.3 million (RM58.42 million).
In a Bursa Malaysia filing, Dialog said the Thai government awarded the block after the 25th Thailand Onshore Bid Round. POES will take a participating interest of 70%, with Canadian-listed CanAsia Energy Corp holding 30%. The award remains subject to conditions including finalisation and signing of the concession agreement.
Dialog expects physical work to start immediately once the agreement is signed. POES already operates the producing L53/48 concession next to L8/66, which previously belonged to that concession. The acreage was returned to the Thai government under rules requiring undeveloped areas to be surrendered over time.
The group said the neighbouring blocks have similar geology and that L8/66 is expected to give POES access to more acreage around existing producing fields. It also said the award would support its upstream portfolio and allow it to draw on technical services across its businesses.
Pan Orient Petroleum Pte Ltd, an indirect wholly owned Dialog subsidiary, owns 50.01% of POES. Thailand-based Sea Oil Energy Ltd, which provides energy and marine services, holds the other 49.99%.
