Contractor confirms dispute over Gorgon jetty contract
JOHANNESBURG (miningweekly.com) – ASX-listed contractor CIMIC on Monday confirmed that a notice of dispute had been issued to Chevron over work related to the construction of the liquefied natural gas (LNG) jetty and marine structures for the Gorgon project, on Barrow Island, offshore Western Australia.
CIMIC subsidiary CPB Contractors was part of a consortium including Saipem SA and Saipem Portugal Comercio Maritime, which in 2009 won the contract to construct the 2.1 km LNG jetty and marine structures.
During the project, changes to the scope and conditions led to the consortium submitting a change order request.
CIMIC reported that, while negotiations between the consortium, Chevron and Chevron’s agent continued, it felt the process had to be progressed to the next step, which led to the notice of a dispute.
The notice required the consortium to enter into a further prescribed negotiation process, which, if unsuccessful, might lead to a private arbitration.
CIMIC stated that its share of the consortium’s total amount under negotiation equalled about A$1.86-billion. CIMIC is of the view that CPB Contractors was entitled to that amount plus interest and costs.
“As the Gorgon contract does not specify a time limit within which the process must be determined, there can be no certainty as to when the mater will be finalised," CIMIC stated.
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