The Board of Directors of Dialog Group Berhad (“DIALOG” or “the Company”) is pleased to announce that its wholly owned subsidiary, Dialog D & P Sdn. Bhd. (“DDPSB”) has on 16 August 2019, entered into a Share Purchase Agreement (“SPA”) with Asia Energy Services Sdn. Bhd. (“AES”) to acquire an additional 25% equity interest in Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”) (“Acquisition”) for a purchase consideration of USD8.22 million, equivalent to approximately RM34.5 million. DDPSB currently holds 50% equity interest in HBP with the balance held by AES.

HBP is the independent technical service contractor for the Oilfield Services Contract (“OSC”) entered into with Petronas Carigali Sdn. Bhd. (“PCSB”), to provide Contractor Services required to enhance the recoverable reserves from the Bayan Field. The Bayan Field is located offshore Bintulu, Sarawak with a term of 24 years (up to 2036).

The Acquisition provides the right opportunity for DIALOG to expand and deepen its upstream investments, and will increase opportunities for synergies with the Group’s integrated technical services. This Acquisition will result in the consolidation of HBP’s existing profit generating business, and will thus immediately contribute positively to the Group’s results.

The Group is also optimistic of the future prospects of the Bayan Field and is confident that HBP will continue to contribute positively to the Group’s results for the remaining 18 years of the OSC, in line with the Group’s strategy of generating long term recurring income.

Upon completion of the Acquisition, HBP will become a 75% owned subsidiary of DDPSB, and Halliburton will continue to provide its technical services to the OSC.

Please refer to the attachment for further details of the announcement.

This announcement is dated 16 August 2019.