News Release

Deleum And Petronas Signed Joint Commercialisation Agreement

Kuala Lumpur, 9 November 2011

Deleum Berhad, through its wholly owned subsidiary, Delcom Chemicals Sdn Bhd (Delcom Chemicals), recently entered into a Joint Commercialisation Agreement with PETRONAS Technology Venture Sdn Bhd (PTVSB) to jointly undertake commercialisation activities of the Solid Deposition Treatment Technology (SDTT).

SDTT is a thermo-chemical solution developed to resolve complex organic solid deposition problems in producing wells. This novel system is very flexible and yet effective in removing predominantly organic deposit in flow conduits such as well, pipeline, flow lines, top site and process equipments. The system has superior advantage both technically and commercially as compared to other prevailing techniques in the industry. PTVSB, the technology commercialisation arm of PETRONAS, is authorised to license the Intellectual Property Rights of this technology to Delcom Chemicals for the sole purpose of this Joint Commercialisation Agreement.

The Agreement is a result of a joint effort between Deleum Group and PETRONAS following a collaborative research & development work for the technology. The R&D work, undertaken by Delcom Chemicals and PETRONAS’ R&D arm PETRONAS Research Sdn Bhd (PRSB) included field trial activities to identify solutions for solid deposition problems in production wells.

“We are honoured to have formed a partnership and collaboration platform with PETRONAS to commercialise this technology, which was successfully developed from an earlier collaborative research effort with PRSB. With the commercialisation activities in place, our partnership will prosper and enable us to contribute to the domestic oil and gas production enhancement activities, which is in line with the National Key Economic Areas initiatives,” said Encik Nan Yusri bin Nan Rahimy, the Group Managing Director of Deleum Berhad.

Via this Joint Commercialisation Agreement, PETRONAS has granted Delcom Chemicals the exclusive and non-transferable license rights for the sole purpose of undertaking the commercialisation activities technology. This technology has been able to reduce operation costs by increasing the sustainability of the well production and is also compatible with formation hydrocarbon and well completion system.

“We are naturally very pleased with these achievements, a culmination of many hours of hard work between the two companies and we strongly believe that this technology would certainly translate into significant benefits not just for us but also for the industry as a whole. It is with that thought that we have now agreed to embark onto this next step – in bringing the technology into the marketplace – for commercialisation,” said Puan Haida Shenny Hazri, the Chief Executive Officer of PTVSB.

Encik Nan Yusri also added, “We are delighted to be a part of this collaboration with PETRONAS, which is a significant step forward in providing a sustainable growth for the Deleum Group. This collaboration will definitely broaden our business avenues and perspectives in our provision in the oilfield services.”