KBR said it expects to receive a total of $271 million under a tentative settlement with a consortium that included GE and Australian construction giant CIMIC Group in a contract dispute over work at the Inpex-operated Ichthys project in Australia.
Under the terms of the proposed settlement, the US-based construction and oilfield services company is set to receive $203 million later this month and the remaining $68 million next March.
KBR was part of joint venture company JKC, which also consists of Chiyoda and JGC, that was involved in the construction of the giant Ichthys liquefied natural gas (LNG) export project in northern Australia.
The settlement agreement remains conditional and the outstanding arbitration between JKC and a consortium, comprising CIMIC, GE, and CH2M Hill Australia, is proceeding until the conditions are satisfied, said KBR.
Separately, CIMIC confirmed the settlement relating to a power plant construction contract at Ichthys that was terminated in January 2017. Arbitration hearings were due to start tomorrow.
CIMIC said it will pay an amount of A$192.5 million ($144 million) this month and A$300 million in March 2023 to the JKC consortium.