In conjunction with Kawasaki Heavy Industries (KHI) of Japan, Laing O鈥橰ourke has been constructing four cryogenic tanks on the Ichthys LNG project for JKC Australia LNG, under a contract signed in 2012. Work began on site mid-2013 and is in its final stages.
鈥淜HI, which leads this phase, has not paid Laing O鈥橰ourke for its work on this complex and resource-intensive remote engineering project for several months,鈥� said a company statement last week. 鈥淟aing O鈥橰ourke has made significant efforts to resolve the matter, but direct approaches to KHI in Japan over recent weeks have failed to produce a satisfactory outcome.
鈥淎fter the most recent meeting in Tokyo last Thursday, Laing O鈥橰ourke notified the parties that it would take action to protect itself from the consequences of KHI鈥檚 conduct, unless urgent measures to rectify the situation occurred.
鈥淜HI has declined to take those necessary steps.鈥�
Laing O鈥橰ourke said that its priority is to now to attempt to redeploy staff to the company鈥檚 national pipeline of projects whilst also assisting sub-contractors impacted by this demobilisation. It added that it has ensured all staff, suppliers and contractors have received their entitlements during the period of dispute. The company鈥檚 other project on the Ichthys site, which is direct for JKC, is unaffected.
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