Dialog Group joint venture secures onshore oil and gas exploration concession in Thailand

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Dialog Group Thailand oil concession

Highlights

Pan Orient Energy (Siam) Ltd and CanAsia Energy Corp won the bid for Thailand's L8/66 onshore oil and gas block with a minimum work commitment of US$14.3 million.
POES, a joint venture involving a Dialog subsidiary, will hold a 70% operating interest, with fieldwork set to begin once the concession agreement is finalised.
The acquisition of L8/66 strengthens Dialog's upstream portfolio; its shares rose 1.08% to RM1.87, giving it a market value of RM10.56 billion and a gain of more than 6% this year.

This article was translated from the original. Read the original version by our correspondent here.

Concession award details and operating plan

As reported by The Edge Malaysia, citing a filing with Bursa Malaysia, Pan Orient Energy (Siam) Ltd received notification from the Thai government on Monday that it and CanAsia Energy Corp had successfully bid in the country's 25th bidding round for onshore oil and gas blocks, thereby securing the L8/66 concession.

POES will hold a 70% participating interest, while Canada-listed CanAsia will hold the remaining 30% as a non-operating interest. Development of the L8/66 block includes a minimum work commitment of US$14.3 million, equivalent to approximately RM58.4 million.

The award remains subject to the finalisation and signing of the concession agreement, as well as the fulfilment of conditions precedent. Fieldwork is expected to commence immediately after the agreement is signed.

Impact on Dialog's upstream portfolio

POES is a joint venture between Dialog's wholly owned subsidiary, Pan Orient Petroleum Sdn Bhd, and Thailand's Sea Oil Energy Ltd, which holds the remaining 49.99% equity interest. Dialog is already operating the L53/48 onshore concession block, which is in the production stage and located adjacent to L8/66.

The company said L8/66 was previously part of the L53/48 concession area but was returned to the Thai government under concession terms requiring the phased relinquishment of undeveloped areas. According to Dialog, the new block's geological characteristics are similar to those of L53/48, giving POES additional exploration acreage around the existing oil field.

Dialog said the acquisition of the L8/66 concession further strengthens its upstream business portfolio and has the potential to create operational synergies by integrating the group's technical services within its diversified business model. The group added that it remains focused on strategic expansion across its upstream, midstream and downstream segments, as well as sustainable and renewable energy, to enhance resilience against varying economic cycles and oil prices.

Dialog shares closed 2 sen higher, or 1.08%, at RM1.87 on Tuesday, giving the company a market capitalisation of RM10.56 billion. Year to date, the shares have gained more than 6%.

In our coverage of corporate developments, Dialog Group Bhd announced that its 50.01%-owned joint venture had been awarded concession and operator rights for the L8/66 onshore exploration block in Thailand. At the time, we also noted that Pan Orient Energy (Siam) Ltd would operate the concession with a 70% participating interest, while CanAsia Energy Corp would hold the remaining 30% as a non-operating partner.

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