By Colin Kellaher

KBR Inc. on Friday said its JKC Australia LNG Pty Ltd. venture has settled a running dispute with a client, adding that it expects a negligible financial impact.

The Houston provider of technology and engineering solutions said the venture, in which it has a 30% stake, signed an agreement that resolves claims and disputes with Ichthys LNG Pty Ltd., an affiliate of Japan's Inpex Corp., related to construction of the Ichthys liquefied-natural-gas export project in northern Australia.

KBR, which booked a $193 million charge in the second quarter based on the progress of settlement talks, said it expects to record a non-material charge against its third-quarter earnings for final warranty items.

JKC Australia, which KBR formed with Japan's JGC Holdings Corp. and Chiyoda Corp., won a contract for engineering, procurement and construction services for the plant in 2012 by Ichthys LNG, led by Inpex. The dispute later arose over payments to sub-contractors to cover increased costs.

KBR on Friday said the settlement agreement doesn't affect JKC Australia's claim against its subcontractor associated with the combined cycle power plant, which the company expects will result in a favorable cash award upon resolution.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

10-15-21 0648ET