The Queensland Supreme Court ruled in favour of Santos in proceedings against Fluor Australia Pty Ltd (Fluor), according to the company's release.
The Court affirmed that Fluor must pay approximately A$692 million to Santos and its co-venturers, with further sums yet to be determined.
The dispute arose from an engineering and construction contract signed in 2011 between Santos and Fluor for the development of production facilities forming part of the Gladstone LNG project.
Construction took place between 2011 and 2014.
Santos argued that Fluor was not entitled to all the costs it had claimed and been paid under the contract. The company sought to recover those amounts and made claims for liquidated damages due to late project completion. Santos also sought enforcement of a parent company guarantee from Fluor Corporation.
The Queensland Supreme Court referred Santos’ claims to three referees, whose final report on 14 July 2023 concluded that Santos was entitled to recover certain costs.
The Court upheld the majority of these findings, ruling that Fluor must pay at least A$692 million to Santos and its co-venturers, with further sums, interest, and legal costs to be determined in the coming weeks.
Santos Ltd is an Australian public company, engaged in the exploration, production, transportation, and marketing of oil and natural gas. It operates in multiple regions, including Australia and Asia.
Fluor Australia Pty is an Australian proprietary limited company and a subsidiary of Fluor Corporation, providing engineering, procurement, construction, and maintenance services in Australia.