BHP Billiton obtains redress from Dalmine

BHP Billiton obtains redress from Dalmine

Australian steel producer BHP Billiton, as part of a consortium, announced that it has reached a settlement with Italian steel pipe maker Dalmine SpA regarding a failed underwater pipeline project. The claim was brought against Dalmine, a subsidiary of Luxemburg based steelmaker Tenaris SA, in April 1998. Dalmine has supplied pipes used by the consortium in an underwater pipeline installation in 1994 in the Liverpool Bay area of UK continental shelf. The pipeline failed in 1996, two months after being commissioned. The terms of the settlement require that a total of £108 million is paid to the consortium. BHP Billiton is expected to receive approximately £54 million as a 41.6% owner of the pipeline.