CIMIC to sue Chevron over Gorgon dispute

Construction contractor CIMIC Group has started court proceedings in the United States against Chevron and KBR regarding a dispute over the jetty at the Gorgon LNG Project.

Reuters is reporting that CIMIC is seeking up to $A1.86 billion in damages.

CIMIC was commissioned to build the jetty in 2009 and issued a notice of dispute regarding the work in February 2016, following a disagreement over changes to the project.

“Negotiations under the contract continue,” CIMIC released in a statement.

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

The Gorgon Project will develop the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 130 and 220 kilometres off the northwest coast of Western Australia.

The project is a joint venture of the Australian subsidiaries of Chevron (approximately 47 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and Chubu Electric Power (0.417 per cent).

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