An Australian construction firm has reportedly filed a billion lawsuit against Chevron for a cost dispute tied to the Gorgon LNG project.
CIMIC Group told Reuters on Monday that it has begun court proceedings in the United States to seek up to $1.42 billion from Chevron and KBR Inc., the project manager at Gorgon.
Further details about the proceedings have not been disclosed.
The dispute concerns a jetty that CIMIC was commissioned to build at the Gorgon LNG project in Western Australia in 2009.
CIMIC built the jetty as part of a consortium with Italy’s Saipem.
According to Business News Western Australia, CIMIC claims that Chevron and KRG altered the scope of the work and conditions for the jetty project, forcing the construction consortium to conduct extra fabrication and transportation work.
CIMIC also claims that the contractors had to provide additional resources to complete the project due to weather-related challenges, Business News added.
The jetty project was completed in 2014.
According to Reuters, CIMIC issued a notice of dispute for the construction work in February after the firms disagreed about changes to the project.
CIMIC added that negotiations under the contract are continuing.
“The commencement of the proceedings has no effect on the negotiation process or Cimic Group’s entitlement to the amounts under negotiation,” CIMIC told Energy Voice.
Chevron has not commented on the dispute.
Chevron started producing liquefied natural gas (LNG) and condensate at the Gorgon Project in March.
The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 and 136 miles off the northwest coast of Western Australia.
The Gorgon field is one of the largest gas fields ever discovered in Australia.