Finland: Neste Oil Clarifies Position on Disputed Contract as New President is Appointed
|
|
|
|
Wednesday, 03 September 2008 |
 Neste Oil has clarified its claims against YIT Industrial and Network
Services as totaling some €107 million in a contract dispute that was
put before the Court of Arbitration in April this year. This week also
sees Mr Matti Lievonen appointment as the new President & CEO.
As reported in April, Neste Oil's claims against YIT consist of damages based on contract delays, now specified at approximately €38.5 million, and damages valued at some €68.5 million resulting from subsequent lost production. The dispute between Neste Oil and YIT relates to disagreements related to the final financial settlement of mechanical installation work on production line 4, which was completed and came on stream at Neste Oil's Porvoo oil refinery in the summer of 2007.
YIT has lodged counter claims against Neste Oil totaling some €25 million, primarily based on work carried out under the contract and the additional costs incurred due to the prolongation of the project.
Both parties contest each other's claims.
In a separate development, this week also sees Neste Oil Corporation's Board of Directors appoint Matti Lievonen (age 49) as the company's new President & CEO. He will take over on 1 December 2008. Neste Oil's current President & CEO, Risto Rinne (58), will leave his position for health reasons and retire.
PetrolWorld 030908
|
