Deleum emerges as third winner of Petronas’ MCM services contract

Deleum Bhd - Oilfield

KUALA LUMPUR: 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-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 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 was 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 had received two letters of contract extension from Petronas Carigali to provide painting and alternative blasting services for Peninsular Malaysia and East Malaysia operations. 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.