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CIMIC commences proceedings against Chevron and KBR

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LNG Industry,

According to Reuters, CIMIC Group – an Australian construction company – has commenced proceedings in the US against Chevron Corp. and KBR Inc. CIMIC is seeking up to AUS$1.86 billion regarding a dispute concerning the Gorgon LNG project jetty in Western Australia.

CIMIC was commissioned to construct the jetty in 2009, and originally issued a notice of dispute related to the work in February. This followed a disagreement concerning changes to the project. In February, the company argued that it was owed AUS$1.86 billion for the work.

In a statement, CIMIC said: “Negotiations under the contract continue.

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

Edited from various sources by David Rowlands

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