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Santos disputes $6m unpaid work claim

ENERGY company Santos is in a dispute over unpaid work said to be worth more than $6million done on its pipeline network, which forms part of GLNG.

Lean Field Developments went into voluntary administration on February 10, citing that Santos's decision not to 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. Most concerns revolve around work done for Santos GLNG.

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 that would have been payable in April when the project was completed.

Liquidators met with Santos on February 10, and 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's claim that Santos still owes $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 was a process under way to determine how much money was 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.

The report claimed 97% of the project was complete.

When Lean Field Development went into administration it employed 77 people and 20 subcontractors.



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