Dialog to build supply base in Saudi Arabia

Published: 2009/08/28

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 Ltd (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 August 26 for an initial period of 20 years at an annual rental of about RM634,066, 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 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.

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