August 21, 2016 / 11:00 PM / 3 years ago

Australia's CIMIC sues Chevron over $1.4bln Gorgon LNG construction dispute

SYDNEY, Aug 22 (Reuters) - Australian construction company CIMIC Group said on Monday it had started court proceedings in the United States against Chevron Corp and KBR Inc, seeking as much as A$1.86 billion ($1.42 billion) regarding a dispute over the jetty at the Gorgon LNG project in Western Australia.

CIMIC was commissioned to build the jetty there in 2009 and issued a notice of dispute regarding the work in February, following a disagreement over changes to the project.

The company said then that it was entitled to A$1.86 billion for the work.

“Negotiations under the contract continue,” CIMIC said in a statement on Monday.

“The commencement of the proceedings has no effect on the negotiation process or CIMIC Group’s entitlement to the amounts under negotiation,” it added. ($1 = 1.3130 Australian dollars) (Reporting by Tom Westbrook; Editing by Sandra Maler)

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