[2] The establishment of a factory on Balambangan was officially approved by a committee of the board of directors in 1768 and Dalrymple was offered the role of management of the new settlement.

[3] Dalrymple was replaced by John Herbert who commanded the Britannia as it transported soldiers, goods, and supplies from India in 1772,[2] and arrived at Balambangan in December 1773.

[3] In the second half of the 18th century, the Dutch from Batavia attempted to settle the island's western coast, but withdrew by 1797.

[5] In 1803, in response to the restitution of the Moluccas to the Dutch as per the Treaty of Amiens of 1802, Lord Wellesley, Governor-General of India, decided upon the resettlement of Balambangan, and instructed R. J. Farquhar, the British Resident at Amboina, to manage the expedition to the island.

[6] Farquhar reestablished the settlement at Balambangan by the end of September 1803,[6] despite the ships Anstruther and Thornhill being wrecked off the coast of Banggi Island whilst en route from Malacca to Balambangan on 23 September, and the General Baird being destroyed by fire in the settlement's harbour on 29 October.