EnQuest Sends Arbitration Notice to Barakah ƶijϻ
Oil company EnQuest has sent a notice of arbitration to the Malaysian offshore oilfields services firm Barakah ƶijϻ Petroleum regarding a dispute in which an adjudication decision was made in January ordering EnQuest to pay around $17,1 million, plus interest to Barakah's subsidiary PBJV.
Barakah ƶijϻ's subsidiary PBJV had in September 2021 filed an adjudication claim against EnQuest in Malaysia seeking around RM73,5 million plus interest for works done and/or services rendered for the Outstanding Sum up until the year 2020 under a letter of the award signed in July 2018, were PBJV was engaged by EnQuest as the contractor for the execution of the "Provision of Pan Malaysia Maintenance, Construction and Modification (“PM-MCM”) Contract."
According to Barakah ƶijϻ, on December 29, the adjudicator delivered a decision in favor of PBJV, ordering EnQuest to pay PBJV RM71,567,429.55 (around $17,1 million) by January 28, 2022, and interest at a rate of 5% year on the adjudicated sum calculated from the Due Date (January 28, 2022) until full payment. EnQuest was also ordered to pay the costs of the adjudication proceedings of RM154,995.69 (around $37,037).
However, in a statement shared on February 4, 2022, Barakah said:" As of to date, no payment is received by PBJV. Instead, PBJV received on 28 January 2022 a Notice of Arbitration dated 26 January 2022 [...] from EnQuest. PBJV is taking advice from its solicitors and will attend to the said Notice of Arbitration appropriately," the company said.
"As announced previously, the Adjudication Decision is subject to further legal proceedings which PBJV has taken all the necessary steps to act accordingly. The Company will make the appropriate announcements to Bursa Malaysia as and when there are material developments in relation thereof," Barakah ƶijϻ said.
