PETALING JAYA: Barakah Offshore Petroleum Bhd and its potential white knight, Singapore’s Lecca Group Ptd Ltd, have mutually called off two agreements that were part of the Practice Note 17 (PN17) company’s proposed regularisation plan.
“Due to the suspension of the licence held by its wholly owned subsidiary PBJV Group Sdn Bhd from Petroliam Nasional Bhd (Petronas), the board is of the view that it will be challenging for Barakah to implement its proposed regularisation plan,“ Barakah explained in a stock exchange filing on its decision to terminate the agreements.
This includes PBJV’s disposal of the pipe lay barge for a US$21 million (RM88 million) cash to Lecca and the placement of 375 million shares to Lecca at four sen per share under tranche 1 placement and RM25 million in nominal value of redeemable convertible unsecured loan stocks on a five-for-three basis.
“The board will continue to explore other avenues to formulate a plan to regularise its financial conditions. Further announcement will be made as and when necessary to Bursa Securities with regards to the development of the matter in accordance with the requirements under PN17 of the Listing Requirements,“ it said.
In July, Petronas suspended the licence of PBJV for three years as there was an adverse report from Petronas Carigali Sdn Bhd pertaining to the non-performance of PBJV in relation to the contract relating to provision of underwater services for PCSB.