Reference is made to the announcement made by the Company on 9 July 2019.

On 8th July 2019, PETRONAS issued a three (3) year suspension notice (“the Suspension”) on the license of PBJV Group Sdn Bhd (“PBJV”), a wholly-owned subsidiary company of BARAKAH Offshore Petroleum Berhad (“Barakah”). Such notice according to PETRONAS was issued based on grounds of adverse reports of PBJV’s performance under a contract referred to as “Provision For Underwater Services For Petronas Carigali Sdn Bhd (“PCSB”)” (“the Contract”). This Suspension was issued post completion of the Contract.

In response, PBJV has issued a Notice of Demand and Dispute dated 5th August 2019 to both PETRONAS and PCSB where it disputes the validity of the Suspension being issued without any legal justification nor compliance to procedures. The Contract has been successfully carried out and completed prior to the Suspension. Upon completion of the Contract, positive appraisal was subsequently given by PCSB hence making the Suspension unwarranted.

PBJV has demanded an amount of RM1.02 billion against PETRONAS and PCSB, among others, based on the loss of future profits, reputation and market shares prices. The Notice of Demand & Dispute has been issued by PBJV’s legal firm of solicitors ie. M/s Ram Reza & Muhammad. PETRONAS and PCSB have been given fourteen (14) days to comply with the demand.

This announcement is dated 6 August 2019.