KUALA LUMPUR (Aug 13): Barakah Offshore Petroleum Bhd and its wholly-owned PBJV Sdn Bhd have received legal notices from a client, demanding RM85.20 million from them over what the client claims to be the failure of PBJV to fulfil its contractual obligations.

The demand notices were served to Barakah and PBJV by PRPC Utilities and Facilities on Aug 9, Barakah said in a stock exchange filing today.

“An amount of RM85,203,274.96 has been stated in the demand, on the basis that among others, PBJV has failed to fulfil all of its obligations under a contract referred to as Contract No. PC14-CON-K-0001-0701 Utilities, Interconnecting, Offsite (UIO) Facilities Procurement, Construction & Commissioning (PCC) of Underground Pressurized Non-Metallic Piping Firewater Network East Side (hereinafter referred to as P14 Contract),” the group said.

Barakah said it was included as a recipient in PRPC's demand on the basis Barakah had given a parent company guarantee dated April 6, 2016, to guarantee PBJV’s performance as contractor.

"Barakah and PBJV have been given 15 days and 30 days respectively, to comply with the said demands," the group said.

“Barakah and PBJV dispute and deny such allegations and further view that the underlying factual circumstances for the P14 Contract shall present sufficient grounds to dismiss the claim by PRPC. Barakah and PBJV are now in consultation with their appointed legal firm to discuss their legal options, and shall respond to PRPC in due time,” it added.

Barakah shares closed 10% or half a sen lower at 4.5 sen today, with 3.67 million shares traded, giving it a market capitalisation of RM37.61 million.