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High Court rejects by Barakah Offshore Petroleum’s RM1.02b suit against Petronas

31 MARCH 2022

KUALA LUMPUR, March 31 — The High Court here today rejected a RM1.02 billion suit by Barakah Offshore Petroleum Bhd (Barakah) and its wholly owned subsidiary PBJV Group Sdn Bhd (PBJV) against Petroliam Nasional Berhad (Petronas) and Petronas Carigali Sdn Bhd (PCSB).

Barakah had sued the two companies over the suspension of PBJV’s licence under the Petroleum Development Act 1974 (PDA).

Judge Datuk Aliza Sulaiman ruled that Petronas does not owe a duty of care to its licensees in exercising its powers to suspend licences under the PDA.

“In any event, Petronas did not breach any duty of care in suspending PBJV’s licence under the PDA,” said the judge.

She also ordered Barakah and its subsidiary to pay RM400,000 in costs to the two companies.

Petronas and PCSB were represented by counsel Nagarajah Mutthiah, Kenny Lam Kian Yip and Jennie Liow Sue Xian of Rosli Dahlan Saravana Partnership while the plaintiffs were represented by Ismail Ariffin and Saffa Ismail from Messrs Ram Reza & Muhammad.

The decision was delivered via online proceedings after a full trial was conducted for the past one year.

Media reports had said that PBVJ’s licence had been suspended by Petronas since June 2018 due to non-performance. — Bernama

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