Pursuant to paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), the Company wishes to announce that its wholly-owned subsidiary, PBJV Group Sdn Bhd  (“PBJV”) had on 26 November 2019 served a Notice of Arbitration on Mersing Construction & Engineering Sdn Bhd (“Mersing”) to claim for a sum of RM56,811,917.49, in connection with a subcontract dated 4 April 2016 titled ‘Subcontract Work for the Provision of Design, Supply, and Installation / Construction and Completion of Pipe Works with Horizontal Direct Drilling (HDD) Method for Selat Mendana, Sungai Lebam and Sungai Layau, Johor Darul Takzim, Comprising Part of Procurement, Construction and Commissioning (PCC) of Pengerang Gas Pipeline Project’ (“Subcontract”).

The basis of PBJV’s claims are as follows:

(a)     Penalty for Fatality / Loss Time Injury in a sum of RM 13,038,350.00;

(b)     Cost to Replace Damaged Sungai Layau HDD Pipeline caused by Mersing in the sum of RM 41,020,529.49; and

(c)     Cost for Work-on-behalf by PBJV for Mersing (Change in tie-in point for Sg Layau HDD Work) in a sum of RM 2,753,038.00.

The Arbitration Clause is provided under Clause 7.3 of the Terms of Contract of the Subcontract.

The Company will make the appropriate announcements to Bursa Malaysia as and when there are material developments in relation thereof.

This announcement is dated 28 November 2019.