Malaysian contractor Deleum Technology Solutions (DTS) — formerly Deleum Primera — will soon be allowed to again tender for work in the country after being suspended in March last year by national oil company and industry regulator Petronas.

Deleum confirmed it had received a letter dated 12 December from Petronas confirming “the uplift of the suspension” against DTS with immediate effect. Subsidiary DTS will have to apply to renew its license for a year in accordance with Petronas’ licensing and registration requirements.

“The board is of the view that the uplift of the suspension is expected to improve the future prospects of the group,” said Deleum.

Adverse reports

Petronas on 25 March 2021 banned with immediate effect Malaysian oilfield services contractor Deleum Primera from participating in future tenders as the latter was being investigated by the Malaysian Anti-Corruption Commission (MACC) for alleged corruption.

Parent Deleum at the time said the licence suspension letter from Petronas indicated Malaysia’s national oil company had received “adverse reports” about its 60%-owned indirect subsidiary Deleum Primera — including the ongoing MACC investigation into “alleged unethical and integrity issues” with regards to contracts with national upstream player Petronas Carigali.

Deleum itself in late 2020 had lodged the complaint with MACC over “an alleged illegal scheme” involving some Deleum Primera employees, suppliers, contractors and some Petronas Carigali employees.

Deleum had earlier engaged accountants PwC Consulting Associates to carry out a forensic investigation of Deleum Primera.

Deleum Primera appealed Petronas’ suspension given the alleged malpractice was carried out by two directors — not practised by the company, its board or its shareholders excepting the two individuals under investigation.

Petronas had suspended Deleum Primera’s licence for all Standardised Work & Equipment Categories (SWEC) future tenders until further notice; which effectively banned the contractor from being invited or able to bid in any tenders issued by Petronas, its subsidiaries or any Petroleum Arrangement Contractors (other operators in Malaysia).

Deleum Primera was allowed to complete already awarded contracts in Malaysia while its business in Indonesia is not dependent on SWEC compliance and approval.

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