Barakah said earlier this week in a filing with Bursa Malaysia that its wholly-owned unit PBJV had issued a notice of demand and dispute on August 5 to both Petronas and Petronas Carigali after the company’s license was suspended by Petronas for three years.
Namely, the three-year suspension, issued on July 8, was based on the grounds of adverse reports of PBJV’s performance under a contract for provision of underwater services for Petronas Carigali.
Barakah added that this suspension was issued after the completion of the contract. In response to the suspension, PBJV issued a notice to dispute the validity of the suspension.
The company said that the contract was successfully carried out and completed prior to the suspension. Also, Barakah stated that “upon completion of the contract, the positive appraisal was subsequently given by Petronas Carigali hence making the suspension unwarranted.”
With the license suspended, PBJV is unable to undertake or bid for new contracts from Petronas but it is still allowed to continue and complete its existing and on-going contracts with Petronas.
According to the offshore service provider, the amount of RM1.02 billion was based on the loss of future profits, reputation, and shares’ market price.
It is worth noting that Petronas and Petronas Carigali were given 14 days to comply with the demand.