MSIA'S DIALOG GROUP TO DEVELOP SUPPLY BASE IN SAUDI ARABIA

KUALA LUMPUR, Aug 27 (Bernama) -- Dialog Group Bhd is to develop a
supply base at the Jubail Commercial Port (JCP) in Saudi Arabia.

Its subsidiary, Dialog Services Saudi Arabia Company Limited (Dialog
Saudi), has secured a land lease to develop the Jubail Supply Base for
integrated logistic services at the JCP.

Dialog said the lease agreement for 3.45 hectares land within the JCP was
signed on Aug 26 for an initial period of 20 years at an annual rental of
about RM634,066 (US$179,494), with an option to extend for a further five years.

The proposed Jubail Supply Base is strategically located in close proximity
to offshore oil and gas fields.

According to Dialog, the Jubail Supply Base has an existing 300-metre long
wharf in a sheltered all-weathered basin of the JCP, with adequate draft for
offshore supply vessels.

It said the proposed Jubail Supply Base would serve as a one-stop,
integrated offshore logistic hub and resource centre for oilfield services,
equipment and supplies while supporting the active, growing offshore oil and gas
development in the Arabian Gulf.

The development of Phase One of the proposed Jubail Supply Base is expected
to commence immediately and it will be developed over a period of one to two
years, Dialog said.

On completion, it would have facilities comprising marine logistic services,
bulk bunkering and storage facilities,workshops and warehouses.

The estimated capital expenditure for Phase One of the proposed Jubail
Supply Base is about RM94 million (US$26.85 million).

In anticipation of business growth potential, Dialog will follow up with
the Phase Two development for which an additional 28 hectares of land within the
JCP would be sought in future.

Once fully developed, the Jubail Supply Base will occupy a total of
31.45 hectares.

Dialog said its ownership in the proposed Jubail Supply Base will result in
an increase in its sources of sustainable and recurring income in future.
--BERNAMA