INVESTOR RELATIONS

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

BURSA ANNOUNCEMENTS
Date: 20 September 2018

MATERIAL LITIGATION WRIT OF SUMMONS FILED BY CPM CONSTRUCTION SDN BHD


Type Announcement
Subject MATERIAL LITIGATION
Description WRIT OF SUMMONS FILED BY CPM CONSTRUCTION SDN BHD

Barakah Offshore Petroleum Berhad ("Barakah" or the "Company") wishes to announce that its wholly-owned subsidiary company, PBJV Group Sdn Bhd ("PBJV"), had on 19 September 2018 been served with a Writ of Summons filed by CPM Construction Sdn Bhd ("CPM").

This matter had been fixed for case management by the High Court of Shah Alam on 25 October 2018.

PBJV is a major subsidiary of the Company. The total cost of investment of the Company in PBJV is RM83,455,957.48.

CPM is a Consortium Member jointly with PBJV ("PBJV-CPM Consortium") to undertake the Procurement, Construction and Commissioning (PCC) of Pengerang Gas Pipeline Project at Johore Darul Takzim for Petronas Gas Berhad. The claim submitted by CPM is for:-

a)    the sum of RM15,573,427.78 for alleged variation works and claim for alleged loss and expense purportedly incurred by CPM under the PBJV-CPM Consortium matrix of responsibility;

b)    interest of 5% per annum on the above sum (or any amount to be determined by the Court) from the date of this action until full payment;

c)    costs; and

d)    such further and/or other reliefs that the Court deems fit and proper.

The potential loss from the litigation, if any, would not exceed claimed amount plus any interest, legal and court administrative costs.

The claim is not in accordance with the terms of the Consortium Agreement and is strenuously disputed by PBJV. PBJV has engaged solicitors to act for and on its behalf to defence and counter claim against claim by CPM.

Thus, the Company does not foresee the abovementioned litigation to have any material financial and operational impact.

The Company will make announcement on further development of the above matters in due course.

This announcement is dated this 20th day of September 2018.





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