KUALA LUMPUR (March 31): Barakah Offshore Petroleum Bhd and its subsidiary PBJV Group Bhd have failed in their RM1.02 billion claim in the High Court against Petroliam Nasional Bhd (Petronas) and its exploration arm Petronas Carigali Sdn Bhd.

Delivering the court’s decision during virtual proceedings on Thursday (March 31), Justice Datuk Aliza Sulaiman said Petronas does not owe a duty of care to its licensees in exercising its powers to suspend licences under the Petroleum Development Act 1974 (PDA).

The judge further held that Petronas did not abuse its powers in suspending PBJV’s licence under PDA, and ordered Barakah and its unit to pay RM400,000 in costs to Petronas and Petronas Carigali.

Barakan had announced in August 2019 that it was demanding RM1.02 billion as compensation from Petronas and Petronas Carigali over what it claims to be an unwarranted suspension notice.

It said the sum is, among others, based on the loss of future profits, reputation and market share prices, as a result of the three-year suspension notice issued by Petronas on July 8, on PBJV’s licence.

Barakah said the notice was issued after the completion of a contract to provide underwater services for Petronas Carigali, and was issued — according to Petronas — based on grounds of adverse reports of PBJV's performance.

Barakah’s share price fell 0.5 sen or 7.7% to close at six sen, giving it a market capitalisation of RM60.18 million.