Reference is made to the announcements made by the Company on 9 July 2019, 6 August 2019, 13 August 2019, 16 August 2019, 26 August 2019 and 13 September 2019 (collectively “Announcements”). Unless stated otherwise, definitions used in this announcement shall carry the same meanings as defined in the Announcements.

In relation to the Notice of Demand and Dispute dated 5 August 2019 issued against both PETRONAS and PCSB where it disputes the validity of the suspension dated 8 July 2019 being issued without any legal justification nor compliance to procedures.

The Company wishes to inform that on 25 September 2019, Barakah and PBJV have jointly filed a Writ of Summons proceeding against PETRONAS and PCSB in the Kuala Lumpur High Court (“Writ”). The Writ proceeding filed cites that the suspension notice issued by PETRONAS is illegal, unjustified and unwarranted and aims for it to be annulled and invalidated. The Writ has been filed by Barakah and PBJV’s solicitors, M/s Ram Reza & Muhammad.

This Writ has been filed subsequent to an earlier legal proceeding filed by PBJV against PRPC Utilities and Facilities Sdn Bhd (“PRPC”), a subsidiary under the PETRONAS Group, due to a breach of contract which includes among others PRPC’s failures to honour a payment certificate amounting to RM6,579,806.74 and to process a progress claim amounting to RM23,144,529.02.

The current Writ further states among others that PETRONAS being a national entity created under the statute called the Petroleum Development Act 1974 (“the Act”) carries both an implied and/or clear duty to the public at large to ensure that all its internal process which affect the members of the public are carried out with utmost due diligence, conforms to public policy and devoid of any recklessness.

The Suspension notice dated 8 July 2019 issued by PETRONAS has further been cited by Barakah and PBJV as ambiguous and misconceived. Despite PETRONAS own positive appraisal towards PBJV’s performance and/or completion of the contract referred to as “Provision For Underwater Services For PCSB”, the Suspension issued have absolutely ignored such fact. The Suspension notice carries no elaboration nor does it condescend to any particulars to support the suspension. 

The Writ proceeding pleads among others that the issuance of the Suspension notice by PETRONAS is a form of transgression and an abuse to its statutory duties, prerogatives bestowed by the Act and ultimately towards its responsibility to uphold public policy.

Barakah and PBJV have also among others pleaded a monetary claim of RM1.02 billion against PETRONAS and PCSB among others on the basis of clear adverse economic effect, loss of income and reputation caused by such suspension.

This announcement is dated 26 September 2019.