PETALING JAYA: Deleum Bhd
has secured a six-year turbomachinery maintenance contract from PETRONAS Carigali Sdn Bhd, strengthening its position as a key service provider in Malaysia’s upstream oil and gas sector.
In a filing with Bursa Malaysia, the group said its 90%-owned indirect unit, Turboservices Sdn Bhd, had accepted a letter of award on Nov 12 for the provision of maintenance services for solar turbines, with the contract deemed effective from Nov 8.
The agreement also comes with an option for a further three-year extension, potentially stretching the relationship with PETRONAS’ upstream arm to nine years.
Under the contract, Deleum will supply original equipment manufacturer-certified spare parts and undertake a full range of field services, including preventive and corrective maintenance, troubleshooting, engineering support, major overhauls, refurbishment and system upgrades for solar turbine turbomachinery used across PETRONAS Carigali’s operations.
The group said the contract is expected to contribute positively to its revenue, earnings, and net assets over the contract period, while having no impact on its share capital or shareholding structure. Funding for the work will be met through internally generated cash.
While the job carries typical operational and external risks, including occupational safety and regulatory exposure, the board said Deleum’s track record in turbomachinery services provides confidence that such risks can be managed in the ordinary course of business.
No shareholder or regulatory approvals are required, and the board added that neither directors nor major shareholders have any interest in the deal.
“This contract is in the best interest of the Deleum Group,” the group’s board said, underscoring its importance to earnings visibility.
