US court backs KBR in dispute with Pemex

KBR Inc. subsidiary Commisa has won a judgement of more than $465 million in a US court in a long legal dispute with Pemex Exploration & Production (PEP) over two platforms offshore Mexico.

Commisa installed the natural gas treatment, processing, and reinjection platforms in the Bay of Campeche in 2004 and claims not to have been fully compensated.

The International Court of Arbitration of the International Chamber of Commerce upheld the claim in 2009, but a Mexican court nullified the award in 2011 (OGJ Online, Jan. 26, 2010).

In the latest ruling, the US Second Circuit Court of Appeals rejected the Mexican court’s argument that PEP, as a branch of the government, couldn’t be bound by arbitration.

PEP can seek rehearing or apply to the US Supreme Court for review.

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