Company chases Santos for $6m after Curtis Island GLNG job

ENERGY company Santos is in a dispute over unpaid work worth more than $6 million on its pipeline network that's part of GLNG. 

Lean Field Developments went into voluntary administration on February 10, citing Santos' decision to not pay a $4.2 million claim ordinarily due on February 9 until March 22 as the main reason.

The company went into liquidation owing creditors about $30 million dollars and most of the concerns revolve around work done for Santos GLNG.

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In a creditors report by liquidators Deloitte Touche Tohmatsu, it is claimed Santos owes the company $4.1 million for works in January and a further $3.8 million which would have been payable in April when the project was completed.

Liquidators met with Santos on February 10 where Santos agreed to pay $1.1 million of the January claim.

The main point of the dispute is over the contract and Lean Field Development claiming Santos still owe $6.3 million.

"We reject the claim that money is owed and we've previously written to the administrator to make this clear," a Santos GLNG spokesperson said.

The spokesperson said there is a process underway to determine how much money is owed.

"Santos wants to see that any amount that may be owed is made available through legislative process to subcontractors who completed work and were not paid by Lean Field Developments," the spokesperson said.

The initial $32 million contract from July 2015 was to complete Santos GLNG's Roma West Phase 2A Balance of Works Project.

This included construction of gas and water gathering lines, instrumentation and piping and overhead and underground fibre optics and power distribution for the project.

The report claimed 97% of the project was complete.

When Lean Field Development went into administration is employed 77 people and 20 subcontractors and the report stated "the majority had been made redundant".

They kept 12 staff on to complete mechanical data reports and finish the job but the dispute appears to be set to be going to court.



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