1. INTRODUCTION

The Board of Directors of REB wishes to announce that the Company’s sub-subsidiary, Emir-Oil LLP ("EO" of "the Plaintiff") had filed a claim to Ministry of Energy of the Republic of Kazakhstan (“MOE” or “the Defendant”) at Economic Court of Nur-Sultan (“The Court”) on 15 July 2022 relating to the approval of the Amendment No. 4 on the deferral of the contractual obligations of Dolinnoe’s oil field in 2020 and 2021 to a later period.

The preliminary hearing had been held on 8 August 2022 and the second hearing had been held on 22 August 2022.

The claim is detailed in item 2 of this announcement. 

(hereinafter referred to as “the Suit”)

2. PARTICULARS OF THE CLAIMS

Pursuant to the Statement of Claim, the Plaintiff had claimed the following from the Defendant:

“To establish the rejection to approve the Amendment No. 4 (Amendment to the Dolinnoe’s Subsoil Use Contract) by the MOE as unjustifiable and oblige the MOE to approve the above-mentioned amendment to postpone the obligations of year 2020 and 2021 to a later period.”

3. CIRCUMSTANCES LEADING TO THE SUIT

During the period from 2020-2022, Emir-Oil had submitted several applications to the MOE for the postponement of obligations for 2020 and 2021 to a later period. The Ministry, however, had rejected Emir-Oil’s application on the transfer of obligations to a later period.

On 15 July 2022, Emir-Oil had decided to submit the claim to the Economic Court of Nur-Sultan to establish the rejection of the MOE as unjustifiable and oblige the MOE to postpone the obligations to a later period.

4. FINANCIAL AND OPERATIONAL IMPACT ON THE COMPANY

In the event that the suit is not in favour of the Company, the financial and operation impact to the Company shall be limited to fulfil the contractual obligations and pay a fine of RM 24,761,000 (KZT 2,632,000,000).

5. STEPS TAKEN AND/OR PROPOSED TO BE TAKEN IN RESPECT OF THE SUIT

The Court on 22 August 2022 had supported the position of the MOE and rejected the claim of Emir-Oil.

Emir-Oil intends to appeal the decision of the Court of first instance to the Supreme Court of the Republic of Kazakhstan within one month from 22 August 2022.

Hence, the Company is seeking necessary legal advice to resolve and /or to defend the legal suit.

The Company will make the necessary announcements to Bursa Malaysia Securities Berhad as and when there are further developments in relation thereof and/or upon receipt of any further directions by the Court.

This announcement is dated 25 August 2022.