Malaysia-based Barakah Offshore Petroleum has served Kuala Lumpur-based Petronas with a notice demanding RM180 million from the oil and gas company. The notice has been filed through its wholly-owned subsidiary PBJV Group.
In a Bursa Malaysia filing, Barakah said it will take legal action if Petronas neglects, refuses or fails to pay the amount demanded. Petronas has a time period of 14 days to make the payment from the day the notice was served.
According to Barakah, the RM180 million demanded from Petronas are for the loss and expenses the company incurred under extension of time by PBJV under a RM30.44 million procurement, construction and commissioning contract for the Pengerang gas pipeline project. The claims are also for PBJV’s loss of the balance of the contract price of the project arising due to the signing of the global settlement agreement for RM24.48 million and projected loss of revenue due to the cancellation of licence.
This follows Barakah’s notice to Petronas in August demanding RM1.02 billion as compensation an unwarranted suspension notice.
Earlier in the month of July, Petronas suspended Barakah’s licence due to non-performance of a contract. According to the company, the letter from Petronas indicated that there was an adverse report from Petronas Carigali pertaining to the non-performance of PBJV in relation to the contract relating to the provision of underwater services for Petronas Carigali.
In the letter, Petronas accused Barakah of being financially distressed and not forwarding payments to its subcontractors on time.
According to reports, Avenir LNG and MISC, the leading international shipping line of Malaysia have secured a time charter party (TCP) from Petronas’ subsidiary Petronas LNG worth RM117 million.