Petronas unit’s RM85m claim against Barakah escalates to writ of summons

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This article has been amended for accuracy.

KUALA LUMPUR (Feb 13): Practice Note 17 company Barakah Offshore Petroleum Bhd said it was served with a summons and claims of RM85.2 million from PRPC Utilities and Facilities Sdn Bhd, a unit of Petroliam Nasional Bhd.

Barakah said it received both the writ of summons and statement of claim yesterday, which followed an initial claim filed by PRPC sometime last year which Barakah had disputed and counterclaimed for RM6.58 million.

The claims, it said, are in relation with a contract for the procurement, construction and commissioning of Underground Pressurized Non Metallic Piping Firewater Network East Side (P14 Contract).

The similar amount of RM85.2 million is also claimed by PRPC against Barakah’s unit PBJV Group Sdn Bhd, it added.

“Currently, Barakah has no expectation to incur any monetary damages which may result from the current writ of summons proceedings and/or arbitration except legal expenses to dispute the claims,” said Barakah.

Barakah, which saw its operating licence suspended by Petronas for three years from July 2019, has three other legal proceedings against the national oil company and its subsidiaries on top of the PRPC writ of summons.

In August last year, Barakah demanded RM1.02 billion from Petronas for the “unwarranted” three-year suspension notice.

It also filed a notice of arbitration on Petronas Gas Bhd to claim RM179.84 million concerning the Pengerang Gas Pipeline project, and another statutory notice against Petronas Carigali Sdn Bhd to claim RM477,467.37 for a contract in 2016.

Barakah shares closed unchanged at 2.5 sen, giving it a market capitalisation of RM20.89 million.