Deleum unit wins Petronas Carigali job

It is third listed firm awarded job to provide MCM services in a week

PETALING JAYA: Deleum Bhd, through 60%owned subsidiary Deleum Primera Sdn Bhd, has become the third listed company in the last one week to announce that it has been awarded a Petronas Carigali Sdn Bhd contract to provide maintenance, construction and modification (MCM) services.

In a filing with Bursa Malaysia, the provider of oil and gas ( O&G)-related support services and products said Deleum Primera was also awarded the contract on Sept 20, under Package C (Offshore) – Peninsular Malaysia Gas.

Like the contracts secured by Dayang Enterprise Holdings Bhd and Carimin Petroleum Bhd, the one given by Petronas Carigali to Deleum Primera is also for a primary period of five years with a one-year extension option. And there is no estimated value of contract provided in the announcement.

“The value of the contract depends on the agreed rates and the work orders issued by Petronas Carigali during the contract execution throughout the contract duration,” Deleum said.

A report quoting industry sources said that each contract is expected to be worth about RM1bil.

Petronas Carigali’s MCM contracts are said to have a combined value of RM6bil.

Carimin clinched the “Peninsular Malaysia Oil” portion, while Dayang secured the “Sarawak Oil” portion.

In September last year, Deleum Primera received two letters of contract extension from Petronas Carigali to provide painting and alternative blasting services for the country’s opera- tions. The one-year extension to the two-year initial duration is until Nov 17 this year.

The Deleum group generates the biggest revenue and profit annually comes from its power and machinery segment, whose businesses include selling and maintaining gas turbines and power plants.

For the second quarter ended June 30, Deleum made a net profit of RM6.7mil on a revenue of RM106.46mil against a net profit of RM7.3mil on a revenue of RM116.24mil for the same period a year earlier.

In its latest annual report, Deleum said it was looking to expand its business activities into other areas, including the downstream sector and will continue to proactively explore new avenues to expand its existing businesses through strategic and synergistic alliances in the energy sector, predominantly in the O&G arena.

Deleum also has plans to expand its business activities both locally and regionally.

“Our self-operated businesses in the oilfield services and integrated corrosion solution segments are focused on expanding their footprints into neighbouring countries, namely, Brunei, Indonesia, Thailand and Singapore, as well as the Middle East.”