Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on October 3, 2019

KUALA LUMPUR: Barakah Offshore Petroleum Bhd has issued a notice demanding RM179.84 million from Petronas Gas Bhd (PetGas).

In a bourse filing yesterday, Barakah said its wholly-owned subsidiary PBJV Group Sdn Bhd would serve a notice of demand to PetGas yesterday.

The group’s claims are as follows:

(a) The loss and expenses incurred under extension of times (EOTs) by PBJV under a procurement, construction and commissioning contract valued at RM30.44 million for the Pengerang gas pipeline project,

(b) PBJV’s loss of the balance of the contract price of the project arising from and in connection with the signing of the global settlement agreement (GSA) for RM24.48 million,

(c) Three change notices submitted by PBJV to PetGas for the project for RM23.52 million, and

(d) PBJV’s projected loss of revenue arising from and in connection with the suspension of PBJV’s Petroliam Nasional Bhd (Petronas) licence estimated at RM101.4 million.

In the notice of demand, PBJV said in the event PetGas fails to pay the RM179.84 million claims to PBJV within 14 days from the date of service of the notice, PBJV will commence legal proceedings against PetGas.

In August, Barakah issued a notice demanding RM1.02 billion from Petronas and the latter’s exploration arm Petronas Carigali Sdn Bhd as compensation over what it claims to be an unwarranted suspension notice.

The Edge Malaysia weekly reported in March that PBJV’s licence was suspended by Petronas since June 2018 due to non-performance, citing a letter from Petronas to several oil and gas players.

In the letter, Petronas highlighted complaints about PBJV being financially distressed and not paying its subcontractors. It suggested that a risk assessment and due diligence be undertaken before any job is awarded to PBJV.

Barakah shares closed unchanged at 3.5 sen yesterday. Shares of PetGas, meanwhile, ended the day down four sen or 0.24% at RM16.46, with a market cap of RM32.57 billion.

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