Malaysia’s Barakah Offshore Petroleum said it has been successful in its adjudication claim against UK-based operator EnQuest relating to offshore works secured under a five-year contract in 2018.
The claim was initiated in September last year by Barakah’s wholly-owned subsidiary PBJV and linked to the letter of award for the provision of the Pan Malaysia Maintenance, Construction and Modification (PM-MCM) contract.
Barakah said its solicitors had been informed that an adjudicator had delivered a decision in favour of its claim, ordering EnQuest to pay around RM71.6m ($17.1m) as well as the costs of the adjudication proceedings. EnQuest is required to pay the sum by January 28 or become subject to an interest rate of 5% per year from that due date.
The decision is subject to further legal proceedings and Barakah added it will make appropriate updates to the Malaysia Stock Exchange as and when there are material developments in the case. EnQuest’s business in Malaysia includes its PM8 extension production sharing deal, consisting of the PM8 and Seligi fields and the block PM 409.
