Deputy public prosecutor Norinna Bahadun said the South American firm received the money some time in 2010, with US$40.5 million of the US$185 million used to buy a drill ship for an oil exploration project with the Venezuelan government.

“This wouldn’t have been possible if it was not for (the funds from) 1MDB which PetroSaudi Oil Services was able to bankroll,” she said.

Norinna said this in asking the court to issue an order to bar PSI and its director, Tarek Obaid, from using more than US$340 million in funds allegedly from 1MDB kept in a client’s account of a UK law firm.

The prosecution argued that the US$340,258,246.87 in Clyde & Co LLP belonging to PSI and PetroSaudi Oil Services were proceeds from unlawful activities.

The Malaysian Anti-Corruption Commission (MACC) previously pointed out that PetroSaudi Oil Services won its bid in an arbitration proceeding, with Petróleos de Venezuela, owned by the Venezuelan government, ordered to deposit US$500 million into Clyde & Co LLP’s bank account.

Should the prosecution obtain the court order, they can proceed to invoke the Mutual Assistance in Criminal Matters Act and serve it to the UK’s Crown Prosecutor Service for the government there to enforce.

Norinna also told the court that the US$185 million that originated from 1MDB was part of the US$1 billion pumped into a joint venture with PSI.

The US$1 billion was supposed to be deposited into the 1MDB-PSI joint venture account, but only US$300 million was moved into the account, known as Good Star Limited.

It was later revealed that Good Star was controlled by fugitive businessman Low Taek Jho, or Jho Low.

Norinna also said charges were filed here against Low, Tarek and another former PSI director, Patrick Mahony, in absentia for criminal conspiracy two years ago.

The hearing before judge Ahmad Shahrir Salleh continues.