Gorgon jetty cost doubles

By Russell Searancke

 21 June 2012 22:59 GMT

The cost of the jetty and ­marine structures on Chevron’s giant Gorgon liquefied natural gas project in Australia has ­doubled to A$1.85 billion ($1.86 billion), writes Russell Searancke.

However, Chevron is maintaining that its overall project cost and schedule remains ­unchanged.

The builder of the jetty and marine structures is a joint venture between Saipem and Australian company Leighton Contractors.

Their original contract was for A$900 million, which was later bumped up by A$150 million for a variation order.

However, Leighton said the value of the job has now leapt to A$1.85 billion because the workscope had “evolved” with the addition of fabrication and transportation of more than two kilometres of pipe racks, and transportation to site of 24 pre-cast concrete caissons…

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