CIMIC sues Chevron over Gorgon LNG Dispute

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.

Reporting by Tom Westbrook