KBR says JKC, Ichthys LNG settle outstanding claims and disputes
KBR said that JKC Australia LNG, a joint venture in which it has a 30% stake, has entered into an agreement that settles outstanding claims and disputes with its client Ichthys LNG.
With the binding settlement agreement in place, the firms will withdraw all claims and end all ongoing arbitrations and court proceedings between them.
Stuart Bradie — KBR President and CEO said: “We are pleased to announce the resolution of disputes between JKC and its client. This settlement is a favorable milestone in our commitment to resolve legacy matters, and it reduces uncertainty, liquidity risk and commercial dispute costs.”
KBR said that in connection with the settlement agreement, it has registered the majority of the impact in its Q2 2021 results. The US engineering company anticipates recording a non-material charge for final warranty items in its third quarterly earnings in 2021.
According to KBR, the settlement agreement between JKC Australia LNG and Ichthys LNG does not affect the pursuit of, or positions related to, its joint venture’s claim against its subcontractor associated with the combined cycle power plant, which it anticipates to yield a favorable cash award upon resolution.