Liquefied Natural Gas (LNG) Project Australia

This LNG project ranks among the most significant, large and technically complex oil and gas projects in the world. It combines three megaprojects: one of the world’s largest offshore, semi-submersible facilities; a state-of-the-art onshore production facility; and an 890 kilometre undersea pipeline.

This is also one of the few projects worldwide that incorporates the whole chain of development and production components: subsea, offshore, pipeline and onshore.

The operator faced several disputes including arbitration proceedings instigated by EPC contractors and equipment suppliers engaged on the project.

What we did

The client required expertise from across our quantum, engineering and delay services to advance, improve and pursue claims against the operator. HKA was also instructed to advise on the operator’s counterclaims concerning liquidated damages, late delivery and defective performance.

The client had the benefit of a global team of 28 professionals combining more than 400 years of experience in quantum, engineering, delay and dispute resolution. A decisive factor in advancing the client’s claims was our robust and comprehensive prospective delay analysis, a fundamental building block in establishing its entitlements to extensions of time.

HKA’s multidisciplinary engineers provided technical support to advance the client’s case under the contract for changes arising out of a highly complex project featuring some world-first technologies.

Outcomes

Based on HKA’s contributions to the client’s position paper for the negotiation process – consisting of hundreds of pages of detailed submissions, analysis and supporting evidence – our client achieved a favourable US$70 million commercial settlement in negotiations with the operator.