KBR Receives Arbitration Award Against PEMEX
January 12 2010 - 4:05PM
Business Wire
KBR (NYSE: KBR) announced today its Mexican subsidiary, Commisa,
has received an arbitration award against Pemex Exploration and
Production (PEP), a subsidiary of PEMEX, the Mexican national oil
company. The base award is in the amount of approximately $286M.
The award also includes legal and administrative recovery fees as
well as interest bringing the award total to in excess of $350M.
PEP was awarded approximately $6M on counterclaims, plus interest
on a portion of that sum.
The award arises out of a 1997 EPC contract and PEP’s resulting
failure to pay Commisa fully for the construction of two large
platforms, as well as the related flare and incinerator platforms,
off the coast of Mexico in the Bay of Campeche.
The arbitration was conducted by the International Chamber of
Commerce. The final arbitration hearings were conducted in December
2007, the arbitration award is dated December 16, 2009 and Commisa
was notified of the award January 11, 2010.
“This arbitration closes the chapter on a significant legacy
litigation issue for KBR,” said William P. Utt, KBR Chairman,
President and Chief Executive Officer. “With this matter now
resolved, the company can move forward and reinvigorate its
continued efforts of being the global contractor of choice.”
This is the third recent arbitration award received by KBR
subsidiaries Commisa and Combisa against PEP, all arising from
works performed in the Bay of Campeche. The two prior awards have
been satisfied by PEP.
KBR is a global engineering, construction and services company
supporting the energy, hydrocarbon, government services, minerals,
civil infrastructure, power and industrial markets. For more
information, visit www.kbr.com.
KBR (NYSE:KBR)
Historical Stock Chart
From May 2024 to Jun 2024
KBR (NYSE:KBR)
Historical Stock Chart
From Jun 2023 to Jun 2024