Australia's CIMIC Sues Chevron over $1.4bln Gorgon LNG Construction Dispute

Source: Reuters 8/22/2016, Location: Not categorized

Australian construction company CIMIC Group said it had started court proceedings in the United States against Chevron and KBR, 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.

CIMIC was commissioned to build the jetty there in 2009 and issued a notice of dispute regarding the work in February, following a disagreement over changes to the project. The company said then that it was entitled to A$1.86 billion for the work.

'Negotiations under the contract continue,' CIMIC said in a statement on Monday. 'The commencement of the proceedings has no effect on the negotiation process or CIMIC Group's entitlement to the amounts under negotiation,' it added.


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