Santos receives $240m from Fluor Australia after Supreme Court ruling
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The news: Santos will receive $240 million from Perth-based construction company Fluor Australia after the Queensland Supreme Court ruled in August that the oil giant was owed costs under a construction contract between 2011 and 2014.
The numbers: Santos confirmed that Fluor has paid $1.073 billion, with net proceeds of $240 million to be recognised on Santos' balance sheet after GST and legal fees.
In 2023, a tribunal found that Santos was entitled to recover funds of around $793 million, exclusive of GST, from Fluor. The decision was upheld in full in August by the Queensland Supreme Court, which also determined that Santos was entitled to interest.
The context: In October, Fluor appealed the court's judgment. Should the appeal be upheld, some or all of the funds may be returned. The appeal hearing is currently scheduled for July 2026.
The proceedings concerned an engineering and construction contract that Santos entered with Fluor in 2011 for the development of production facilities that formed part of the Gladstone LNG project.
Santos argued that Fluor was not entitled to all the costs it had claimed and received payment for under the contract. Santos also made claims to recover liquidated damages associated with the late completion of the project.
The source: ASX
