Petronas suspends Barakah unit's licence for three years

Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said.

KUALA LUMPUR: Petroliam Nasional Bhd has suspended its licence issued to  Barakah Offshore Petroleum Bhd's unit over the non-performance of a contract.

In a statement to Bursa Malaysia on Tuesday, Bakarah said its unit PBJV Group Sdn Bhd (PBJV) received a notification of suspension of the licence from the national oil company.

“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,” it said.

Barakah said following the suspension, Petronas including its subsidiaries and any petroleum arrangement contractors (PACs) 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 on-going contracts with Petronas including its subsidiaries and PACs in accordance to the term and conditions of the respective existing and on-going contracts,” it said.

Bakarah said it would seek clarification from Petronas and appeal against the suspension.

Barakah's share price rose one sen tpo 6.5 sen with 117 million shares done at midday.