Wednesday, October 27, 2010

Chevron (NYSE:CVX) Hires Forensic Accountants to Investigate Gorgon Expenses

Chevron has reported hired forensic accountants to investigate whether contractors working on the $43 billion Gorgon gas project have been overcharging them for their labor.

Even so, Chevron, when queried on rumors they had huge cost overruns and were behind schedule, denied the assertions, and said the project will deliver gas as projected by 2014.

It's unknown if this is a fishing expedition or is based upon going over the hefty contracts, which in a year's time have come to $24 billion in total rewarded to contractors and/or subcontractors.

Alleged increasing costs and labor shortages are also part of the idea the company could be getting shortchanged.

Either Chevron believes there's something to the rumors or they're moving to quench the rumors before they get out of control.

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