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CIMIC sues Chevron and KBR over Gorgon LNG jetty contract

Staff Writer |
Australian construction firm CIMIC Group has started court proceedings in the U.S. against Chevron and KBR over the Gorgon LNG Jetty and Marine Structures project.

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CIMIC said it was owed $1.42bn for constructing a jetty at the site in western Australia. The company is also seeking interest of over $500m and costs.

CIMIC was commissioned to build the jetty at the project’s site in 2009. The company issued a notice of dispute regarding the work in February this year, after a disagreement on modifications to the project.

The company said the matter would likely lead to arbitration. In its latest statement, CIMIC said discussions under the contract will continue.

The company said: “The commencement of the proceedings has no effect on the negotiation process or CIMIC Group’s entitlement to the amounts under negotiation.”

The Gorgon LNG Jetty and Marine Structures project is situated on Barrow Island, 70 km off the Pilbara coast of Western Australia.

CPB Contractors, in consortium with Saipem, were selected as the preferred proponent to develop the project.

The scope of work includes the design, material supply, fabrication, construction and commissioning of the LNG Jetty.

The consortium will also deliver, fabricate and build marine structures including a heavy lift facility, tug pens and navigation aids.

The LNG Jetty and Marine structures, which will make a significant impact on LNG exports from Australia, are integral to the Gorgon LNG project.

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