INVESTOR RELATIONS

FORM OF NOTICE OF CONVERSION OF 5-YEAR 3.5% REDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS ("RCULS" OR "BARAKAH-LA")

BURSA ANNOUNCEMENTS
Date : 26 August 2019

MATERIAL LITIGATION Demand notices from PRPC Utilities and Facilities Sdn Bhd

BARAKAH OFFSHORE PETROLEUM BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
Demand notices from PRPC Utilities and Facilities Sdn Bhd

Reference is made to the announcements made by the Company on 13 August 2019 and 16 August 2019 (collectively “Announcements”). Unless stated otherwise, definitions used in this announcement shall carry the same meanings as defined in the Announcements.


PRPC earlier had issued demand notices dated 8 August 2019 to both BARAKAH and PBJV and demanded an amount of RM85,203,274.96 (PRPC’s Claim). The claim was made pursuant to the P14 Contract.

 

In response to PRPC’s claim, BARAKAH and PBJV have both issued a Notice of Reply dated 22 August 2019 to dispute the claim. Concurrent to the Notice of Reply, PBJV has further issued a Notice of Demand dated 22 August 2019 to PRPC.


Both notices respectively have cited series of conducts committed by PRPC which have been the cause of serious disruptions and delays to the progress of the work under the P14 Contract.

 

The notices (in no particular order) stated among others that PRPC conduct and failures include (but not limited to) the failure to pay an amount of RM6,579,806.74 within thirty (30) days (pursuant to Article 32.13 of the P14 Contract) being the sum due under Progress Claim No. 9 which has been duly certified by PRPC and the subsequent failure to process PBJV’s Progress Claim No.10 which has been submitted to PRPC since 30 October 2018 for work done.

 

BARAKAH and PBJV further cited that despite the contractual procedures for variation of works, (which require a Change Order to be issued by PRPC), there have been verbal variation instructions given by PRPC which delayed the original milestones. In consequence to PRPC’s own failure to issue the “Change Orders” and despite work being done pursuant to the said instructions, no extension of time was granted. BARAKAH and PBJV finally dispute the validity of a letter dated 30 March 2018 issued by PRPC which purported to discontinue all the works under the P14 Contract.

 

PBJV has demanded PRPC to pay the amount of RM6,579,806.74 and to withdraw the discontinuance letter within seven (7) days from the date of PBJV’s notice. Further, PRPC has been demanded to process the Progress Claim No. 10 within fifteen (15) days (in tandem with Article 32.6 of the P14 Contract) from the date of the receipt of the said notice. The Notice of Reply and Notice of Demand dated 22 August 2019 have both been issued by BARAKAH and PBJV’s appointed legal firm.

 

This announcement is dated 26 August 2019.






Announcement Info

Company Name BARAKAH OFFSHORE PETROLEUM BERHAD
Stock Name BARAKAH
Date Announced 26 Aug 2019
Category General Announcement for PLC
Reference Number GA1-26082019-00065


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