Wood Group Unit In Chesapeake Lawsuit Over "Faulty" Valve

22nd Jun 2010 17:24

By Iain Packham Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.S. natural gas company Chesapeake Energy (CHK) is seeking damages from a unit of U.K. oil and gas services firm John Wood Group PLC (WG.LN) following a blowout at a gas well in Louisiana last year, according to court documents seen by Dow Jones Newswires Tuesday. Chesapeake named Wood Group Pressure Control LP as one of three defendants in a petition for damages filed May 3 in the 42nd Judicial District Court, Desoto Parish, Louisiana. Oklahoma-based Chesapeake alleges a defective valve manufactured by Wood Group was one of the causes of the blowout at the Nabors 10-12-12 H-1 natural gas well in Naborton, Louisiana on May 8, 2009. It is also seeking damages from China's Wuxi Seamless Pipe Corp., which made casing for the well, and Petros Amigos Supply Inc., which was contracted to purchase and install the casing. Chesapeake, and other plaintiffs including underwriters from Lloyd's of London, allege they suffered "substantial damages and losses" as a result of the blowout. These losses include clean-up costs, salvage, equipment repair costs, lost revenue and production, property damage and possible fines, according to court documents obtained by Dow Jones Newswires. Chesapeake didn't disclose how much it was seeking in damages. A spokesman said it doesn't usually comment on pending litigation. Wood Group also said it doesn't comment on ongoing litigation. Wuxi Seamless Pipe Corp. and Petros Amigos couldn't immediately be reached for comment. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 22, 2010 12:24 ET (16:24 GMT)