The Board of Directors of Deleum Berhad (“Deleum” or the “Company”) wishes to announce that its 60% owned indirect subsidiary, Deleum Primera Sdn Bhd (“Deleum Primera”), received a notification dated 25 March 2021 on suspension of Deleum Primera’s license from Petroliam Nasional Berhad (“PETRONAS”).

The letter from PETRONAS indicated that PETRONAS has received adverse report pursuant to the news circulated in the media, announcements to relevant party and investigation by Malaysian Anti-Corruption Commission, with regards to alleged unethical and integrity issues on Deleum Primera with regards to relevant work/project under the operations of PETRONAS Carigali Sdn Bhd (“PCSB”).

Pursuant to the above and in accordance with PETRONAS’ License General Conditions, PETRONAS has decided to suspend Deleum Primera’s license for all Standardised Work and Equipment Categories (SWEC) for future tender and/or any new award with effect from the date of the letter until further notice (“Suspension Period”). Throughout the Suspension Period, Deleum Primera will not be invited nor be allowed to participate in any future tender issued by PETRONAS including its subsidiaries and any Petroleum Arrangement Contractors (PACs”). Deleum Primera also will not be awarded with any new contract by PETRONAS including its subsidiaries and any PACs.

Notwithstanding the suspension, Deleum Primera is however, allowed to continue and complete its existing and ongoing contracts with PETRONAS including its subsidiaries and PACs in accordance with the terms and conditions of the respective existing and ongoing contracts. The ongoing contracts of Deleum Primera are as follows:

1. Provision of Maintenance, Construction and Modification Services for PCSB [Package C (Offshore) -Peninsular Malaysia Gas] (Contract No: Cho/2016/BIE3/1001) which was announced on 4 October 2017.

2. Provision of Alternative Blasting and Painting for PCSB (Package B: Sponge-Jet, Vapor and Other Methods) (Contract No: CHO/2017/BIE3/1001) which was announced on 25 September 2018.

3. Provision of Riser Corrosion Prevention System and Maintenance for PCSB (Package B – Sabah Asset and Package C – Peninsular Malaysia Asset) (Contract No: CHO/2017/MA/1003) which was announced on 25 September 2018.

Deleum Primera’s business outside Malaysia, namely in Indonesia not requiring PETRONAS's license is not affected and shall continue to operate accordingly.

Deleum Primera will appeal against the suspension as the alleged practice was carried out by the individuals concerned and is not practised by Deleum Primera, its board of directors, nor its shareholders, excepting the said individuals who are two of the directors and shareholders.

The suspension is not expected to have any material financial impact on the Group for the year ending 31 December 2021.

This announcement is dated 26 March 2021.