Dialog raises stake in technical services contractor

KUALA LUMPUR: Dialog Group Bhd has raised its stake in Halliburton Bayan Petroleum Sdn Bhd (HBP), an independent technical services contractor.

“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,” it said.

The company, in a filing with Bursa Malaysia yesterday, said it had entered into a share purchase agreement with Asia Energy Services Sdn Bhd (AES) to acquire an additional 25% equity interest in HBP for US$8.22mil (RM34.5mil).

The purchase increased Dialog’s stake in HBP to 75%, AES stake reduced to 25%.

AES is a wholly owned subsidiary of Halliburton International Inc, one of the world’s largest oilfield services company.

Dialog said HBP has a contract with Petronas Carigali Sdn Bhd for services 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.

“This acquisition will result in the consolidation of HBP’s existing profit generating business, and will immediately contribute positively to the group’s results,” Dialog said.

“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 oilfield service contract,” it added.