KUALA LUMPUR Malaysia's Dialog Group Bhd (DIAL.KL) said it has signed an agreement with Halliburton International Inc (HAL.N) for a contract worth $1.2 billion aimed at boosting oil output from a mature field in East Malaysia.
The agreement aims to boost recoverable reserves in the Bayan Field, located offshore Sarawak, as Malaysia tries to boost flagging production from its existing oil fields.
"This is in line with Dialog's strategy to continue developing its upstream capabilities, which include the rejuvenation and re-development of mature oil fields," Dialog said in an announcement to the Malaysian stock exchange.
Dialog's unit Dialog D&P Sdn Bhd and Halliburton's Asia Energy Services Sdn Bhd would hold an equal interest in Halliburton Bayan Petroleum Sdn Bhd (HBP) under the agreement running for a term of 24 years, the statement said.
Dialog and Halliburton signed a memorandum of understanding in June to jointly pursue business opportunities in Malaysia.
HBP has tied up with Petronas Carigali Sdn Bhd, the exploration and production arm of state-owned Petroliam Nasional Bhd PETR.UL, to boost reserves in the Bayan Field.
Shares in Dialog rose 0.74 percent to 2.41 ringgit by 0940 am (0140 GMT), while Halliburton shares last traded at $31.7.
(Reporting By Al-Zaquan Amer Hamzah; Editing by Ed Davies)