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Cimic and its consortium partners completed the jetty at the Gorgon LNG project in 2014.

CIMIC sues Chevron, KBR over Gorgon dispute

CIMIC Group has launched legal action in the United States against Chevron over cost blowouts on jetty and marine structures it built at the Gorgon LNG project on Barrow Island.

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Melbourne
CIMIC Group had their priced bid based on initial scope of work and specifications from Chevron. After the commencement of work, Chevron (the company) has changed scope of work , specifications and requirements which i.e. Variation order or change order to the contractor (CIMIC) that will make the contractor change his cost evaluation. It is a straight forward EPC project procedure.Hence, CIMIC will win the case in court and another $1.42bn plus $ 500m of interest will add up to the overrun cost of this troubled project.

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Total Shareholder Return as at 30/06/16

1 year TSR5 year TSR
178thCIMIC Group70%16%
322ndAGL Energy24%12%
356thAmcor19%24%
421stOrigin Energy4%-11%
544thMacquarie Group-11%24%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Revenue

12th-CIMIC Group$13,325.4m
13th↓Amcor$12,811.1m
14th-Origin Energy$11,981.0m
15th-AGL Energy$11,175.0m
17th-Macquarie Group$9,368.0m
77 listed non wa companies ranked by revenue.
Source: Morningstar

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