We refer to the Company’s announcement dated 29 November 2019 and query from Bursa Malaysia Securities Berhad dated 3 December 2019 on the above.

(Unless otherwise defined in this announcement, all terms used herein shall have the same meaning as those defined in the previous announcement in relation to the Notice.)

Our Company wishes to clarify that PBJV is claiming RM179.84 million ("Claimed Amount") in relation to the Procurement, Construction and Commissioning of Pengerang Gas Pipeline Project ("EPCC") where PBJV was appointed by PETGAS as the contractor for the Project.

As per the Notice, the Claimed Amount arise due to PBJV’s dissatisfaction of the following:

1)           The loss and expenses incurred under extension of times by PBJV under the EPCC;

2)           PBJV's loss of the balance of the contract price of the Project arising from and in connection with the signing of the Global Settlement Agreement;

3)           Three change notices submitted by PBJV to PETGAS for the Project; and

4)           PBJV's projected loss of revenue arising from and in connection with the suspension of PBJV's Petroliam Nasional Berhad (PETRONAS) license.

The Company is of the opinion that the Claimed Amount has no basis. Hence, the Company does not expect to any expected losses, financial and operational impact of the Notice on PETGAS.

This announcement is dated 4 December 2019.