Australia: CIMIC Sues Chevron 1,42 Billion Dollar Dispute Down Under

In a statement released on Monday, Australian construction company CIMIC Group announced that it had started court proceedings in the United States against Chevron Corp and KBR.

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Sydney/Australia — The company is seeking as much as A$ 1.86 billion ($ 1.42 billion) regarding a dispute over the jetty at the Gorgon LNG project in Western Australia, Reuters reports.

CPB Contractors, in consortium with Saipem, were selected to develop the Gorgon LNG Jetty and Marine Structures project for Chevron Australia. The project is located on Barrow Island, 70 km off the Pilbara coast of Western Australia.

The scope of work consisted of the design, material supply, fabrication, construction and commissioning of the LNG Jetty. The scope also includes supply, fabrication and construction of marine structures including a heavy lift facility, tug pens and navigation aids.

In February, CIMIC issued a notice of dispute regarding the work in February, following a disagreement over changes to the project. The company said then "CIMIC’s share of the Consortium’s total amount under negotiation equals approximately $ 1.86 billion. CIMIC confirms its view that CPB remains entitled to that amount plus interest (being an amount exceeding $ 500 million which will continue to accrue) and costs (Total Entitlement).   

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