By Ross Kelly
SYDNEY--Australian contractor Worleyparsons Ltd. (WOR.AU) said
Thursday it will pay US$78 million to an affiliate of Exxon Mobil
Corp. (XOM) to settle a dispute over construction of a large
drilling platform in waters off Russia's eastern coast.
Worleyparsons said the settlement includes US$55 million of cash
payments and the withdrawal of a claim to recover US$23 million for
previous work not previously invoiced.
The project, known as Arkutun-Dagi, called for building one of
the largest offshore drilling platforms in the world, designed to
withstand extreme winds and waves. When oil began flowing in
January, the project was over budget and a year behind
schedule.
Exxon claimed Worleyparsons contributed to the delay by making
mistakes in the design of the platform. Worleyparsons denied the
allegations, and said it didn't commit to a fixed deadline or
price.
"The settlement has led to normalization of the parties'
business relationship," Worleyparsons said in a statement
Thursday.
Write to Ross Kelly at ross.kelly@wsj.com
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