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Barakah withdraws appeal in RM1bil suit against Petronas

29 September 2022

KUALA LUMPUR: Barakah Offshore Petroleum Bhd (Barakah) and its subsidiary PBJV Group Sdn Bhd (PBJV) today withdrew their appeal against the High Court’s decision to reject its RM1.02 billion suit filed against Petronas and Petronas Carigali Sdn Bhd (PCSB) over the suspension of PBJV’s licence under the Petroleum Development Act 1974 (PDA).

Based on the notice filed by Barakah and PBJV through Messrs Fairuz Ali & Co, the two companies withdrew their entire appeal without an order as to costs.

Lawyer Kenny Lam, representing Petronas, when contacted, confirmed the matter.

“The appellants withdrew the appeal as there was no merit to appeal against the decision of the High Court,” he said.

Barakah and PBVJ filed the notice of appeal on April 8.

The companies had stated that High Court judge Aliza Sulaiman had erred in fact and law when ruling that the suspension of the licence by letter dated July 8, 2019 was orderly and valid.

In addition, it stated that Aliza had erred when she ruled that Barakah did not have a locus standi against Petronas and PCSB, even though evidence had been submitted that PBJV was the main contributor of income to Barakah.

On March 31, Aliza ruled that Petronas did not owe a duty of care to its licensees in exercising its power to suspend licences under the PDA and that it did not breach any duty of care in suspending PBJV’s licence.

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