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Petronas suspends PBJVs licence

Barakah Offshore Petroleum subsidiary banned from winning new work from state-run giant

A subsidiary of Malaysia’s Barakah Offshore Petroleum will receive no new work from Petronas for at least three years after the state-run oil giant suspended its licence.

Barakah confirmed Tuesday it had received a notification from Petronas dated 8 July of the suspension of PBJV’s licence.

It added the notification indicated there had been “an adverse report” from Petronas Carigali related to the non-performance of PBJV in relation to a contract for the provision of underwater services.

As a result, Petronas made the decision to suspend PBJV’s licence for a period of three years.

“The implication of the letter is that Petronas including its subsidiaries and any Petroleum Arrangement Contractors (PACs) will not award any new contract to PBJV during the suspension period,” Barakah said in Tuesday’s announcement.

“PBJV will not be allowed to bid for new projects undertaken by Petronas including its subsidiaries and any PACs during the suspension period.”

Despite the suspension, Barakah noted that PBJV would still be allowed to complete its existing and on-going contracts with Petronas, while adding that it planned to appeal the suspension.

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