Gor­gon tipped to go well over bud­get

Pilbara News - - News - Peter Wil­liams

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.

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