An entity half owned by Puma Energy Australia has started legal action over an alleged breach of a multi-million-dollar contract for work at its Kwinana bitumen terminal.
Bitumen Storage Services (WA) Pty Ltd (BSS) has lodged a writ in the Supreme Court of Western Australia, naming CBI Constructors Pty Ltd as the defendant.
Australian Securities and Investments Commission data shows BSS is jointly owned by Puma Energy (Australia) Asset Holdings and Sami Bitumen Technologies, based in New South Wales.
CBI Constructors is a subsidiary of Texas-based company McDermott, which focuses on building storage facilities, tanks and terminals.
In the writ obtained by Business News, BSS alleged CBI breached a contract signed in 2017, to design and construct three bitumen storage tanks at the terminal.
The contract was valued at about $5.8 million, the writ said.
The Kwinana Bitumen Terminal on 49 Port Road, Kwinana Beach, is operated by Puma.
BSS alleged that there was considerable bulging of the external shells near the base of tanks CBI built since November 2019.
CBI disputed there was any defect but did complete remedial works in early 2022, BSS claimed in the writ.
But BSS alleged the bulging of the shell continued despite the remedial works with the insulation system collapsing.
In the writ, BSS claimed CBI refused to fix the defective insulation system that caused the bulging.
BSS claimed, in the writ, that CBI pay damages, direct losses and expenses, and remedial work costs from the alleged defective installation.
McDermott has been contacted for comment.
