PETALING JAYA: Petroliam Nasional Bhd (Petronas) has suspended the licence of Barakah Offshore Petroleum Bhd’s wholly-owned subsidiary PBJV Group Sdn Bhd.
Barakah, a Practice Note 17 (PN 17) company, told Bursa Malaysia that PBJV had received a notification dated 8 July 2019 of the licence suspension.
“The letter from Petronas indicated that there was an adverse report from Petronas Carigali Sdn Bhd (PCSB) pertaining to the non-performance of PBJV in relation to the contract relating to provision of underwater services for PCSB. Resulting from that, Petronas has decided to suspend PBJV’s licence for a period of three years with effect from the date of the letter.”
Barakah said the implication of the letter is that Petronas including its subsidiaries and any petroleum arrangement contractors will not award any new contract to PBJV during the suspension period.
“PBJV will not be allowed to bid for new projects undertaken by Petronas including its subsidiaries and any PACs during the suspension period.”
Nevertheless, PBJV is still allowed to continue and complete its existing and ongoing contracts with Petronas including its subsidiaries and PACs in accordance to the term and conditions of the respective existing and ongoing contracts.
Barakah said it will seek clarification from Petronas and appeal against the suspension.
At the noon break, Barakah’s share price gained 18.2% to 6.5 sen on 117.7 million shares done.
