Barakah Offshore Petroleum Bhd, which is listed on Bursa Malaysia, claims that the national oil company wrongfully suspended the licence of PBJV Group Sdn Bhd to provide offshore and underwater works and services for oil and gas exploration and production activities.
PBJV had held the licence for almost 20 years.
Barakah is seeking an order lifting the suspension, and damages for unlawful interference in trade or business and misfeasance in public office against Petronas and eight members of its senior management.
The individuals sued include president and CEO Tengku Muhammad Taufik Tengku Aziz and his predecessor, Wan Zulkiflee Wan Arifin, as well as chief financial officer Liza Mustapha.
Filed on Sept 30, Barakah’s statement of claim alleges that Petronas had issued PBJV a licence to supply products and services triennially since 2000, the last of which expired on May 10, 2020.
Premised on the licence, PBJV had undertaken multiple projects awarded by Petronas, its subsidiaries and other petroleum arrangement contractors, “all of which were completed and delivered satisfactorily”, Barakah’s statement of claim adds.
Petronas suspended PBJV’s licence in July 2019 for three years.
Barakah says that as a result, PBJV was not permitted to take part in tender exercises and was unable to secure any new contract for the provision of services to the energy giant.
The licence also provides that “the suspension would not be deemed lifted at the end of the three-year period, which in effect made (it) an indefinite duration,” the statement of claim adds.
“The continued maintenance of the suspension notice is an abuse of power or authority or is borne of reckless indifference in the exercise of its power.”
The company says Petronas’ senior management acted in bad faith by suspending PBJV’s licence despite the high quality of its work, a fact which Petronas recognised through a certificate of recognition issued in October 2018, a mere nine months earlier.
According to Barakah, the licence was suspended after Petronas’ subsidiary, Petronas Carigali, issued an “adverse report” alleging non-performance by PBJV of certain underwater services it was awarded pursuant to a 2015 contract.
Barakah disputes this, saying it was unsafe for PBJV to carry out the required work at the time because of adverse weather conditions.
Petronas Carigali was also unwilling to absorb additional charter costs which PBJV would have been obliged to incur to carry out the works, it says. Also, vessels suited for work in shallow waters were unavailable at the time.
The company also alleges that PBJV suffered discriminatory treatment by Petronas, claiming that other defaulting contractors were not similarly suspended.
Barakah is represented by Zaid Ibrahim, Suflan, TH Liew & Partners, while Petronas and its officers are represented by Rosli Dahlan Saravana Partnership.
Case management has been fixed for Nov 2.
The defendants are expected to file their defence to the claim later this month.