Gorgon tipped to go well over budget
The Gorgon LNG project will likely end up costing far more than its $US54 billion budget, according to construction company CIMIC.
CIMIC, in a US lawsuit against Gorgon operator Chevron, claims the final bill will be about $US20 billion more than the Pilbara project’s original budget of $US37 billion in 2009. Subsidiary CPB Contractors, seeking damages from Chevron, has aired details of the troubled build of Gorgon’s Barrow Island jetty and marine structures.
A report by US website Courthouse News Service said CPB had accused the oil and gas giant of poor conduct and repeated refusals to pay for work it had commissioned.
The contractor also details the expensive and unpaid impact of 10 cyclones, as well as environmental and safety measures.
CIMIC earlier this year said it was negotiating a $2.36 billion claim against Chevron for the 2.1km jetty CPB built as part of a consortium with engineering company Saipem. CPB is quoted as saying Chevron “sought to undermine and frustrate” its bid to complete the project on time within budget and Chevron says it is reviewing the complaint.